Over the last couple of weeks, the New South Wales and Federal Governments have introduced substantial support for businesses impacted by the prolonged lockdowns. The support has continuously been updated and enhanced as the lockdowns have been extended, leaving business owners scrambling to keep up.

Moore Australia director, Simon Alford outlines the support measures that businesses may have access to:

2021 COVID-19 business grant (up to $15,000)

This grant is available to businesses (including sole traders) and not for profit organisations with an aggregated turnover of less than $50 million and provides them with a cash flow “boost” for difficulties experienced during the first three weeks of the lockdown between 26 June 2021 and 17 July 2021.

Depending on the decline in turnover a business has experienced (which is calculated over a minimum two-week period from 26 June 2021 – 17 July 2021 as compared to the same period in 2019), the amount of the grant is set as follows:

  • 70% or more decline in turnover: $15,000 
  • 50% or more decline: $10,500 
  • 30% or more decline: $7,500  

One of the key criteria for receiving this grant is that the business must maintain their employee headcount as at 13 July 2021 for the period for which the business is receiving payments under this grant and the JobSaver scheme.

There are further eligibility requirements and additional supporting documentation may need to be submitted to Service NSW to determine eligibility for the grant. Applications for this grant close at 11:59 pm on 13 September 2021.

JobSaver scheme (up to $100,000 per week)

The JobSaver Scheme is available to businesses and not for profit organisations with an aggregated turnover of less than $250 million.

Eligible businesses who have experienced a decline in turnover of 30% or more due to the Public Health Order over a minimum two-week period from 26 June 2021 to 30 July 2021 as compared to the same period in 2019, can receive an equivalent of 40% of their weekly payroll up to a maximum of $100,000 per week for the duration of the restrictions from 18 July 2021. For non-employing businesses (e.g., sole traders), the amount is set at $1,000 per week.

These amounts will be paid fortnightly and once an application has been approved, a business or not-for-profit organisation will receive automatic fortnightly payments credited to their nominated bank account. The first payment will be backdated to 18 July 2021 and, where possible, will be made within 10 business days of an approved application.

Like the 2021 COVID-19 business grant, the business is required to maintain their employee headcount as at 13 July 2021 for the period for which the business is receiving payments under the JobSaver scheme.

There are further eligibility requirements and additional supporting documentation may need to be submitted to Service NSW to determine eligibility for the payments. Applications for this grant close at 11:59pm on 18 October 2021.

Micro Business Grant (up to $1,500 per fortnight)

This grant is available to businesses (including sole traders) and not for profit organisations with a turnover between $30,000 and $75,000. Eligible businesses who have experienced a decline in turnover of 30% or more due to the Public Health Order over a minimum two-week period from 26 June 2021 to 30 July 2021 as compared to the same period in 2019, can receive $1,500 per fortnight. Payments will be made in arrears with the first payment backdated to 26 June 2021.

There are further eligibility criteria and additional supporting documentation may need to be submitted to Service NSW to determine eligibility for the grant. Applications for this grant close at 11:59pm on 18 October 2021.

Other issues to note

In addition to the cash support being made available, retailers should also be aware that the NSW Government has introduced the Retail and Other Commercial Leases (COVID-19) Regulation 2021.

Broadly, there is now a requirement for landlords to enter mediation with certain commercial and retail tenants prior to carrying out ‘prescribed actions’ which include eviction, recovering security bonds and terminating leases. This requirement applies from 13 July to 20 August 2021 (unless extended further).

This requirement applies to commercial or retail tenants with an annual turnover of up to $50 million who are eligible for the Micro-business COVID-19 Support Grant, the COVID-19 NSW Business Grant and/or the JobSaver Grant. If there is a breach of the lease, an impacted lessee must give the lessor the following information:

  • a statement to the effect that the lessee is an impacted lessee,
  • evidence that the lessee is an impacted lessee.

This ensures the lessor knows the lessee is an impacted lease and is eligible for these protections.

Final words

These are some of the “larger” grants available but there is more support available in the form of small business fees and charges rebates, payroll tax discounts and deferrals and other concessions for impacted businesses such as land tax relief for landowners who provide rental reductions to certain financially distressed tenants. It is expected that some of the mentioned measures will change in the future as the situation in NSW evolves. Speak with your tax advisor early, to ensure you are fully aware of the options available to you and your business.

The material contained in this publication is in the nature of general comment and information only and is not advice. The material should not be relied upon. Moore Australia, any Australian Member, any related entity of those persons, or any of their officers employees or representatives, will not be liable for any loss or damage arising out of or in connection with the material contained in this publication.