Date posted: 29/07/2021

Summary of NSW COVID-19 lockdown business support

Support measures introduced to help NSW businesses during the extended 2021 COVID-19 lockdown

Outlined below is a summary of government support measures introduced to help New South Wales businesses during the July 2021 COVID-19 lockdown across Greater Sydney, announced in July and extended until Saturday 28 August 2021 at 12.01am. Chartered Accountants can help businesses break down the information for their clients and stakeholders.

Service NSW Toolkit 

In response to questions submitted by CA ANZ and other professional associations, the NSW Government has released a Toolkit to help advisers address some of the issues raised by accountants grappling with the details behind various NSW COVID business support measures. Advisers and their clients are urged to check the Toolkit regularly as more Q&As are added. 

CAs who want questions addressed in the Toolkit should email CA ANZ at [email protected]

NSW Government: https://www.nsw.gov.au/covid-19/2021-covid-19-support-package

Measure Summary Resources

COVID-19 Disaster Payment

Under a new combined Commonwealth and NSW Government support package, the COVID-19 Disaster Payment will be further expanded and increased. From week four of a lockdown because of a Commonwealth Government declared hotspot, the Payment will increase  to $750 pw (up from $600 pw) if a person has lost 20 or more hours of work a week or $450 pw (up from $375 pw) if a person has lost between 8 and less than 20 hours of work a week or a full day of work.

The new national payment rate will commence in the week of 2 August and will be automatically updated for existing recipients. 

It will be available from day one of any lockdown in the future, with claims made from day eight in arrears, with a weekly payment then made for the duration of the Commonwealth hotspot declaration.

No liquid assets test will apply.

Prime Minister's announcement 28 July 2021

NSW government announcement

Apply at Services Australia

2021 COVID-19 Business Grant

A one off, tax free grant depending on decline in turnover experienced over a minimum 2-week period from 26 June 2021 to 17 July 2021, compared to 2019:

  1. $7,500 (30%+ decline), or
  2. $10,500 (50%+ decline), or
  3. $15,000 (70%+ decline).

* Please note the revised timeframes for calculating decline in turnover for the 2021 Covid-19 business grant.

For businesses (and not for profits) with:

  • total annual Australian wages 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,

Employee headcount retention condition applies.

Applications open: 19 July 2021.

Applications close: 13 September 2021

NSW government announcement

Apply at Service NSW

Guidelines (overview)

Detailed terms and conditions

NSW Government FAQs released 28 July 2021

Service NSW Frequently asked questions

Accountant letter template

Privacy collection notice

NSW Small Business Commissioner infographic

2021 JobSaver Payment

Tax free fortnightly payments between $1,000 and $100,000 a week for the period from 18 July 2021 to eligible employers and sole traders (including not for profits) with aggregated annual turnover between $75,000 and $250 million (up from $50 million):

  • Employing businesses: payments will be 40% of the weekly payroll for work performed in NSW with a minimum of $1,500 and maximum of $100,000 (up from $10,000)
  • Non-employing business: $1,000 a week

30% turnover decline test and employee headcount retention conditions apply.

For sole traders, the business must be their primary income source

Applications open: 26 July 2021

Applications close: 18 October 2021

Prime Minister's announcement 28 July 2021

NSW Government announcement 28 July 2021

Apply at Service NSW

Guidelines (Overview)

Detailed terms and conditions

NSW Government FAQs released 28 July 2021

Service NSW Frequently asked questions

Accountant letter template

Privacy collection notice

NSW Small Business Commissioner infographic

2021 COVID-19 Micro Business Grant

Tax free fortnightly payment of $1,500 to businesses (including not for profits) with annual turnover between $30,000 and $75,000.

  • 30% turnover decline test and employee headcount retention conditions apply.
  • Applies to business costs for which no other government support is available.
  • You must not have applied for either the 2021 COVID-19 Business rant or the JobSaver payment
  • The business must be your primary income source, if you're a non-employing business such as a sole trader.

Applications open: 26 July 2021.

Applications close: 18 October 2021.

NSW government announcement

Apply at Service NSW 

Guidelines (Overview)

Detailed terms and conditions

NSW Government FAQs released 28 July 2021

Service NSW Frequently asked questions

Accountant letter template

Privacy collection notice

NSW Small Business Commissioner infographic

COVID-19 Disaster Payment

Hospitality and tourism COVID-19 support grant

Payment to tourism or hospitality businesses that have a turnover of more than $75,000 and an annual Australian wages bill of below $10 million, as at 1 July 2020.

NSW government announcement

Register your interest with Service NSW

Payroll tax relief

2021/22 payroll tax waivers of 25% for businesses with Australian payrolls between $1.2M and $10M that have experienced a 30% decline in turnover, as well as payroll tax deferrals and interest free repayment plans.

NSW businesses with a payroll tax liability have the option to defer lodgement and payment of their 2020/21 annual reconciliation until 7 October 2021.

Customers required to lodge monthly returns have the option to defer their returns due in August and September until 7 October 2021.

All payroll tax customers that defer their payments are eligible for an interest free payment plan of up to 12 months.

NSW Treasurer’s media release 22 July 2021

NSW Premier & Treasurer's media release 13 July 2021

Revenue NSW media release 13 July 2021 

Land tax relief

 

Commercial, retail and residential landlords eligible for land tax relief equal to the rent reductions granted to financially distressed tenants up to 100% of their 2021 land tax liability.

Available for rent reductions made from now until 31 December 2021.

NSW government announcement

NSW government support for residential and commercial tenants

Revenue NSW guidance

Residential landlord grant

 

Residential landlords not subject to land tax can apply for either:

  • a $1500 grant to residential landowners to pass onto their tenants, or
  • a concession of up to 100% of 2021 land tax

Eligibility:

  • for landlords who provide at least that much rental relief
  • tenants must have lost 25% or more of their income
  • available for rent reductions made from now until 31 December 2021

NSW government announcement

NSW government support for residential and commercial tenants

Fair Trading NSW guidance

Gaming machine tax relief

 
Deferral of gaming tax assessments for clubs until 21 December 2021 and hotels until 21 January 2022.

NSW government announcement

Revenue NSW information 

Small business fees and charges rebate

 

Sole traders, owners of a small businesses and not-for-profits may be eligible for a fees and charges rebate of $1500 to offset the costs of eligible NSW and local government charges due and paid from 1 March 2021.

The rebate is available until 30 June 2022.

Apply to Service NSW

Assistance for not-for-profit and commercial performing arts organisations and music venues

A $75 million support package to continue paying staff and performers and provide support for loss of box office income due to COVID restrictions.

Applications open: 23 July 2021

NSW government announcement

Create NSW website

Employee relations

Unlike JobKeeper in 2020, there are no Fair Work national “enabling directions” governing standdowns or reduced hours.

Businesses should seek legal advice on employment law issues.

Fair Work resources: standdowns during lockdowns

COVID lockdown – NSW Long service leave Q&A

Last updated: 28 July 2021

Related download

Service NSW Toolkit

NSW Government Toolkit including FAQs to help advisers address COVID business support issues.

Download PPT from MyCA

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