NSW Government COVID relief measures

By David Downie, Partner

We are now into the third month of our COVID lockdown in Sydney, with no end date as yet set. The financial effects for many businesses and families are severe. Given this, we wanted to provide a summary of the financial support available from the NSW and Federal governments in case any clients or contacts have support available which they have not yet applied for.

We note that you will need a ‘MyServiceNSW’ account to make an application, and as such we cannot lodge the applications on your behalf. We are happy to help assist you in answering any questions you have regarding eligibility and in providing supporting documents to assist your applications.

NSW COVID-19 Business Grant – applications close 13 September

The 2021 COVID-19 business grant provides support for businesses, sole traders or not-for-profit organisations in NSW that have been impacted by the COVID-19 restrictions. This funding is to be used for:

• 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
• Other activities to support the operation of the business.

Businesses with a turnover that is 30% lower than an equivalent two weeks in 2019 are eligible for this support, whether that be a one-time payment of $7,500, $10,500 or $15,000. Applications will close at 11:59pm on 13 September 2021.

To learn more about whether your business is eligible for the COVID-19 business grant, click here.

JobSaver grant – applications close 18 October

JobSaver is a support program to maintain employment of staff for small and medium businesses and provide cashflow support to businesses impacted by the current health restrictions.

Employing businesses receive 40% of their weekly payroll, with a minimum payment of $1,500 per week and a maximum payment of $100,000 per week. Non-employing businesses receive $1,000 per week.

Eligibility requirements:

• A revenue decline of 30% or more due to the Public Health Order over a minimum 2-week period within the period of restrictions (commenced 26 June 2021), compared to the same period in 2019, or the same period in 2020, or the 2-week period immediately prior to any restrictions of 12-25 June 2021 (inclusive).
• Turnover between $75,000 and $250 million for the 30 June 2020 year.

To learn more about whether your business is eligible for JobSaver, click here.

COVID-19 micro-business support grant – applications close 18 October

The COVID-19 micro-business support grant will help micro businesses (small business or sole traders with annual turnover of more than $30,000 and under $75,000 for the 30 June 2020 year) impacted by COVID-19 restrictions. You may be able to apply for a $1,500 payment per fortnight of restrictions. To learn more about whether your business is eligible for the micro-business support grant, click here.

Financial support for residential landlords

Residential landlords who decrease rent for impacted tenants from 14 July 2021 can apply for a grant of up to $1,500 per tenancy or land tax reductions depending on their circumstances. The land tax relief will be equal to the value of rent reductions provided to financially distressed tenants for up to 100% of the 2021 land tax year liability.

To claim the support, landlords will need a rental bond number or a written tenancy agreement, and a written agreement with the tenant to reduce or waive rent payable (from 14 July 2021).

Where a landlord receives financial support for COVID-19 impacted tenants, they cannot ask tenants to repay the amount of the reduction when lockdown ends. For further information, click here.

Land tax relief for commercial landlords

Land tax relief is available to commercial landlords who provide rent relief to tenants due to COVID where the tenant is eligible for NSW business support grants or JobSaver. The land tax relief will be the lesser of the rent reduction provided between 1 July 2021 and 31 December 2021, and 100% of the land tax attributable to the parcel of land leased to the tenant.

For further information, click here.

As mentioned, feel free to contact us if we can be of any assistance as you seek out support for your business.

IMPORTANT NOTICE

This blog post contains general information only and has been prepared by Allworths without reference to your objectives, financial situation or needs. Allworths cannot guarantee the accuracy, completeness or timeliness of the information contained here. By making this information available to you, we are not providing professional advice or recommendations. Before acting on any of the information contained here, you should seek professional advice.