At the time this media release was published, the dates relating to turnover decline were correct. Since publication, Service NSW has changed the date to 17 July 2021. This means the two-week period is from 26 June 2021 to 17 July 2021, compared to the same period in 2019.
With applications due to open on 19 July 2021, Service NSW has today published further details about the eligibility criteria for the COVID lockdown grant for small to medium businesses, says Chartered Accountants Australia and New Zealand (CA ANZ).
On offer at this stage of the roll-out is a one off, tax free grant depending on three tiers of turnover decline over a two-week period from 26 June 2021 to 26 July 2021, compared to the same period in 2019.
All businesses, including not-for-profit organisations, in NSW may be eligible if they have a total annual wage of $10 million or less at 1 July 2020 and aggregated annual turnover between $75,000 and $50 million for the year ended 30 June 2020.
Accountants will need to digest the information quickly and work fast with their eligible clients to gather the information necessary to support applications, said Michael Croker, CA ANZ Tax Leader.
“While the NSW Government has embraced some of the technical jargon used when JobKeeper was rolled out in 2020, the main difference is that NSW agencies and not the ATO will regulate the support program” said Croker.
“This is also state-based, not national so cross-border businesses may need to demonstrate they are physically located and operating in NSW.
“The NSW grant is act of grace payment under the State law, meaning there is no proscriptive legislation like there was with JobKeeper.
“Accountants are also able to attest that their clients satisfy eligibility criteria and a template has now been published for this purpose.”
With more NSW business support information to come, accountants are particularly interested in the NSW ‘JobSaver’ initiative, says Croker.
“JobSaver involves tax free payments between $1,000 and $10,000 a week that are paid fortnightly for the period from 18 July 2021 until the lockdown ends.
“Like the one-off grant, there is an employee retention condition and applications are expected to open on 26 July.”
Croker noted that the roll-out of NSW COVID assistance comes at a time when accountants are busy helping clients prepare year end accounts and 2021 tax returns.
“JobSaver ends when the NSW lockdown ends but many NSW business will need on-going help.
“Business recovery takes time and accountants will be helping clients negotiate with banks, landlords, suppliers and ATO debt collectors for months to come.”NSW Small Business Commissioner infographic