Weekly Digests

COVID-19 business grant

This applies for two periods, from the first 3 weeks of the lockdown, namely 26 June to 17 July, and now extended from 18 July to 28 August 2021. The first one-off cash grant ranges from $7,500 to $15,000 depending on the decline in turnover over a minimum 2-week period from 26 June to 17 July 2021 compared to the same period in 2019. Only GST registered entities who have turnover between $75,000 to $50M for the year ended 30 June 2020 are eligible to apply. Southern border businesses have a different comparison period.

Sectors such as construction who only faced lockdown restrictions at the later dates in the lockdown, are now eligibile for the revised grant as the decline in turnover test has been amended and applies over a 2-week period from 18 July 2021 to 31 July 2021 compared to the same period in 2019. The turnover maximum threshold has also been increased to $250,000 and payments up to $100,000. You should seek assistance to determine if your business qualifies and how to make a successful claim.

Businesses in highly impacted industries will be required to provide details of their qualified accountant, registered tax agent or registered BAS agent for compliance checking, while businesses outside the highly impacted industries list will be required to produce a letter from their practitioner that verifies their decline in turnover. Letters used for the business grant program can be resubmitted.

COVID-19 micro-business grant

Applies to entities who may or may not be registered for GST and have aggregated annual turnover between $30,000 and $75,000 for the period ended 30 June 2020 on the condition that this represents the primary income source for a person associated with the business. The entitlement is a fortnightly payment of $1,500 to cover business expenses during the lockdown. A turnover decline of 30% or more is required over a minimum of 2-weeks commencing 26 June 2021 and ending on 30 July 2021, compared to same period in 2019.

If the entity has applied for either the COVID-19 business grant or JobSaver payment, they are not eligible for this fortnightly payment. Payments are due for periods from 26 June and can be backdated from the date of claim after 26 July 2021 up to 18 October 2021.

JobSaver

Is a weekly payment that starts from week 4 (from 18 July onwards) and is a supplementary support to businesses who received the COVID-19 business grant and continue to be impacted by the COVID-19 restrictions. The weekly payment will be equivalent to 40% of the NSW weekly payroll, subject to a minimum amount of $1,500 and a revised maximum of $100,000. If you are a non-employing business such as a sole trader, you may be entitled to a payment of $1,000 per week.

Important note

Applications are made through Service NSW and opening an account with them from here. Please contact us should you require assistance or an Accountants letter.

Each of these schemes has strict eligibility criteria that must be met and supported by prescribed documentation. Each scheme allows some limited flexibility for alternative circumstances, but these are at the discretion of Service NSW. More guidance is expected to be released for alternative circumstances that will be allowed.
Successful applications may be subject to an audit and evidence must be kept for a minimum of 5 years.