Many businesses are yet again facing the challenge of extensive lockdowns due to the Covid-19 outbreak.
In this summary, we share the support packages available to New South Wales.
We have a national standard of support from the Federal government announcement. The State Governments administer the distribution of the grants
Furthermore, each State has their business support packages as well.
The purpose of these grants is to protect businesses and the livelihoods of the staff who would otherwise be unemployed. There are individual assistance packages as well.
***Beyond the media releases, the policy is frequently changing. Return to this blog to see the latest releases. August 13th, 2021 - the NSW Government have applied the national guidelines for Commercial tenants, providing rent relief. See below***
There may even be an opportunity here for you to not just survive, but thrive coming out the other side.
At Purpose With Profit, we have assisted plant-based businesses through Covid-19 in 2020. Our startup tools can uncover new revenue options. At the same time, our extensive network of experts can assist in all business areas, including tax advisory, grants and much more.
NSW Business Support Packages
Applications open on the 19th of July 2021 and close 13 Sep 2021.
- have an active Australian Business Number (ABN)
- demonstrate your business was operating in NSW as at 1 June 2021
- have had total annual Australian wages of $10 million or less as at 1 July 2020
- have had an aggregated annual turnover between $75,000 and $50 million (inclusive) for the year ended 30 June 2020
- have business costs for which there is no other government support available
- maintain your employee headcount as at 13 July 2021. See the guidelines for definition. However, if an employee resigns, you are still eligible.
- Decline in revenue of 30% or higher since 2019 OR 2020 OR 2 week period prior to lock down beginning (12 June 2021 - 25 June 2021)
Eligible businesses with wages below $10 million can claim grants between $7,500 and $15,000 to cover the first three-weeks of restrictions. To verify the decline, businesses will need to compare their turnover over a minimum two-week period after lockdown commenced, to a minimum two-week period in June and/or July 2019/2020 or 2021.
- $7,500 for a decline of 30% or more
- $10,500 for a decline of 50% or more
- $15,000 for a decline of 70% or more
Multiples businesses under a single ABN are onlyeligible for one grant.
How May Funding Be Used
The State Government provides examples of how the funding may be used, but not limited to services like below:
- utilities, wages and rent;
- financial, legal or other advice to support business continuity planning;
- marketing and communications activities to develop the business;
- the cost of perishable goods that can no longer be used; or
- other activities to support the operation of the business.
- To apply, click on the Services NSW application website.
Support from a Quality Accountant
Interesting to note, the recently changed legislation includes two scenarios, business who started post June 2019 and those who have higher revenue in June 2021
This was an oversight in the first announcement and we are glad the Federal/State governments changed the policy recently.
Quality Accountants supported businesses in the first round to bring about these changes in policy.
Other Support Services Offered by NSW
- A “JobSaver” employee retention scheme providing cashflow support to businesses to help them retain staff. The cash boost will be up to 40% of weekly payroll with a payment of between $1,500 to a maximum of $100,000 per week, provided staffing levels are maintained at the level as of 13 July 2021.Non-employing businesses are eligible for $1,000 per week. See the more detailed guidelines for
- A new grants program for micro businesses with a turnover of between $30,000 and $75,000 experiencing a decline in turnover of 30 per cent. The businesses will be eligible for a $1,500 payment per fortnight of restrictions.
***Job Saver grant is higher than micro-business grant & you can only apply for one grant***
- The NSW Government will re-introduce the Federal Government's mandatory code of conduct for Commercial Leasing to mandate rent relief for eligible tenants impacted by Covid-19. A new $40 million hardship will be set up to provide relief for small commercial and retail landlords. The rent relief can be requested if a business revenue is less than $50 million and qualifies for micro-businesses covid-19 grant, the Covid-19 NSW Business grant and/or Job Saver Grant. The rent relief will be same as the revenue reduction %, where 50% will be deferred and 50% will be waived. The landlord can claim from the Landlord Hardship Fund. Click here for more.
- Payroll tax waivers of 25 per cent for businesses with Australian wages bills of between $1.2 million and $10 million that have experienced a 30 per cent decline in turnover, as well as payroll tax deferrals and interest free repayment plans.
- Land tax relief equal to the value of rent reductions provided by commercial, retail and residential landlords, up to 100 per cent of the 2021 land tax year liability.
- An increase in the payment amount for stood down workers to $750 per week for those who lost more than 20 hours, and to $450 for those who lost between 8 and 20 hours, and available to workers outside of the Greater Sydney lockdown areas.
- A Small Business Fees and Charge Rebate of maximum ($1500) – for sole traders, small business and not-for-profits, this rebate is to re-imburse the costs of operating. The costs need to be incurred with State or Local Council to be permissible.
- A $75 million support package for the performing arts sector to be administered by Create NSW.
- A $26 million support package for the accommodation sector.
- Expanded mental health services with programs targeted at young people and Cuturally & Linguistically Diverse communities.
For Individuals (who were employed & impacted)
From 18 July 20
21, the COVID-19 Disaster Payment will increase from $500 to $750 each week if a person has lost 20 hours or more of work a week, or $325to $375 each week if a person has lost between 8 and 20 hours of work.
The payment will be made available to NSW individuals outside Commonwealth declared hotspots in Sydney if they have lost hours and satisfythe eligibility criteria.
The payment will be a recurring payment for approved recipients for as long as the Commonwealth declared hotspot and lockdown restrictions remain in place.This will remove the need for recipients to re-claim for each seven day periodof a lockdown.
Covid-19 is continuingto be the most disruptive event since the 2nd world war. In Australia, the Federal and State governments are doing the best they can to support us get through this incredibly tough period.
You are doing well. Do remember this.
If you can create time to work ON the business instead of IN the business, remember the Chinese proverb for crisis is opportunity.
While having one shop or a few product lines is a success, with the growing demand for plant-based products, there maybe new channels or even whole new products yet to be commercialised. So if you are curious about how to uncover new opportunities, do connect with us.
In the 2020 lockdown, we connected plant-based businesses in different regions to hear best practices in a safe and confidential online space. The connection allowed businesses to voice issues in a supportive environment. These events fostered collaborations too.
We’ll be kick-starting this again to ensure businesses don’t just survive this lockdown but thrive on the otherside. We’ll invite experts and plant-based pioneers to speak.
If you want to find out more email info (at) purposewithprofit.co
Stay safe & keep on shining brighter.