COVID Related Government Grants in NSW
2021 COVID-19 Business Grant
This grant is available for business, sole trader or not-for-profit organisation in NSW when the business is impacted by COVID-19 restrictions. The grant amount is scaled depends on the decline of turnover:
$7,500 for a decline of 30% or more
$10,000 for a decline of 50% or more
$15,000 for a decline of 70% or more
To be eligible for the business grant, you must:
Have an active ABN
You operate the business in NSW on 1 June 2021
Have had total annual Australian wages of $10 million or less on 1 July 2020
Have had an aggregated annual turnover between $75,000 and $50 million for the year ended 30 June 2020
Have experienced a decline in turnover of 30% or more due to the public health order 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 2 weeks immediately prior to any restrictions of 12 June to 25 June 2021 (inclusive)
For employing business, maintain your employee headcount from 13 July 2021 while receiving payments from this grant.
For the sole trader and non-employing business, if individual associated with and deriving income from the business receiving a Commonwealth COVID -19 disaster payment between 26 June and 17 July, you are not eligible for this grant.
When you apply the grant, you need to provide the evidence on the eligibility, such as copy of Business Activity Statements, Tax Return, business record on the decline or accountant’s letter to verify the information.
You can apply the grant online and the due date is 1 October 2021.
JobSaver Payment
Whilst the abovementioned business grant is to subsidise on the business costs, JobSaver payment is designed to help business to keep the employees staying in the workforce.
How it works? You need to nominate the 2-week period in which your business first experienced the required decline in turnover on or after 26 June 2021. Once approved, payments will be made in arrears and will begin from that nominated fortnight. This grant covers 40% of the weekly payroll for the work performed in NSW: minimum payment is $1,500 per week and maximum payment is $100,000 per week.
Larger business in the hospitality, tourism and recreation industries with a turnover of more than $250 million and up to $1 billion could be eligible for a larger weekly payment under the extension to the JobSaver Scheme.
For non- employing business, you may be eligible to receive a $1,000 per week if you are eligible.
To be eligible for the JobSaver payment, you must:
Have an active ABN
Have been operating business in NSW since 1 June 2921
Have had an aggregated annual turnover between $75,000 and $250 million (inclusive) for the year ended 30 June 2020
Have experienced a decline in turnover of 30% or more due to the public health order over a minimum 2-week period commencing 26 June 2021 compared to:
The same period in 2019, or
The same period in 2020, or
The 2 weeks immediately prior to any restrictions, 12 June to 25 June 2021.
For employing business, maintain your employee headcount from 13 July 2021 or from the day before the fortnight that you first experienced the required decline in turnover.
Due date for the application of JobSaver is 18 October 2021. And you can apply online via Service NSW account.
The latest announcement by Service NSW that business is required to re-test for JobSaver from 13 September to 26 September 2021. The intention is that government will keep supporting the business which continues to experience a decline in turnover of 30% or more. This will result initial eligible business may oscillate between qualifying and not qualifying from one fortnight to the next.
You need to apply those grants separately and if you are eligible for one grant, does not mean you are eligible for the other grants.
Please do not hesitate to contact one of your trusted advisors at Cordner Advisory should you need further assistance.
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