COVID-19 Business Support

Overview of COVID-19 Business Support Package

State Governments provide business support, while the Commonwealth provides individual income-support

COVID-19 Disaster Payment (Cwlth administered)

Weekly tax-free payments from Cwlth for individuals who lost work due to COVID-19 public health orders:

• Up to $450 per week if you have lost between 8-20 hours
• Up to $750 per week if you have lost over 20 hours

Weekly payments of $200 for eligible Centrelink recipients (on top of existing income-support

COVID-19 Business Grants

Providing support for businesses that experienced reduced demand or had to close due to the current restrictions.

For businesses, sole traders and not-for-profit organisations with aggregated turnover between $75k and $50m for the year ended 30 June 2020.

Grants of:

• $7,500 (30% turnover decline)
• $10,500 (50% turnover decline)
• $15,000 (70% turnover decline)

Grant amount depends on the decline in turnover experienced over a minimum 2-week period from 26 June 2021 to 17 July 2021, compared to the same period in 2019, or the same period in 2020, or the two-week period immediately before lockdown commenced (11-25 June 2021).

These grants provide support to businesses from Week 1-3 of the Greater Sydney lockdown

Applications close after 11:59pm on 13 September 2021.

Evidence to support eligibility

Highly Impacted Businesses – Australian income tax return – Qualified accountant, registered tax agent or registered BAS agent details Not Highly Impacted Businesses – Australian income tax return – Qualified accountant, registered tax agent or registered BAS agent details – Accountant\’s letter to demonstrate decline in turnover

JobSaver Payment

Providing cash flow support to impacted SMEs and not-for-profits to help maintain their NSW employee headcount from 13 July 2021.

• Eligable businesses and not-for-profits organisations with employees will receive fortnightly payments backdated to cover costs incurred from week 4 of the Greater Sydney lockdown (from 18 July 2021 onwards).
• For businesses with aggregrated annual turnover between $75k and $250m, minimum 30% decline in turnover over a minimum 2-week period, compared to the same period in 2019, or the same period in 2020, or the two-week period immediately before lockdown commenced (11-25 June 2021)
• Payment will be equivalent of 40% of pre-COVID NSW weekly payroll for employing businesses:

– Minimum weekly payment of $1,500

– Maximum weekly payment of $100,000

• For sole traders, payments will be set at $1,000 per week

• To be eligible, businesses must maintain their employee headcount from 13 July 2021

• Applications close after 11:59pm on 18 October 2021.

Evidence to support eligibility

Highly Impacted Business – Australian income tax return to demonstrate annual turnover – BAS or NSW Payroll tax reconciliation return – Details of their qualified accountant, registered tax agent or registered BAS agent for compliance checking Not Highly Impacted Businesses – Australian income tax return to demonstrate annual turnover – BAS or NSW Payroll tax reconciliation return – Details of their qualified accountant, registered tax agent or registered BAS agent for compliance checking – an accountant\’s letter demonstrating decline in turnover

Micro-Business Grants

Provides cash flow support for micro-businesses who have their work impacted by the restrictions while continuing to incur business costs.

• For micro-businesses (small businesses or sole traders) with annual turnover of more than $30k and less than $75k.
• Grants up to $1,500 per fortnight of restrictions

– Have experienced a decline in turnover of 30% or more over a minimum 2-week period, compared to the same period in 2019, or the same period in 2020, or the two-week period immediately before lockdown commenced (11-25 June 2021)

• Have business costs for which no other government support is available
• Payments will be made in arrears with the first payment backdated to 26 June 2021.
• Applications will close after 11:59pm on 18 October 2021.

Evidence to support eligibility

Highly Impacted Business Evidence of annual turnover, using documents such as: – an accountant\’s letter, or – a BAS, or – business bank account statements; or – a profit and loss statement from accounting software and a personal bank statement. Not Highly Impacted Businesses Evidence of decline in turnover, using documents such as: – an accountant\’s letter, or – business bank account statements, or – a profit and loss statement from accounting software and a personal bank statement or transaction statement.

Accountants letters

Demonstrating the required decline in turnover

Qualified accountant, registered tax agent or registered BAS agent is defined as:

• qualified accountant as defined in the Corporations Act 2001;
• registered tax agent as defined under the Tax Agent Services Act 2009; or
• registered BAS agent as defined under the Tax Agent Services Act 2009.

Non-employing accounting businesses must submit a letter from a qualified accountant, registered tax agent or registered BAS agent that is not an employee or director of the business, an associated entity of the business, or a director or employee of an associated entity of the business.

Templates for accountants letters are provided on the Service NSW website.