INFORMATION PROVIDED BY CPA AUSTRALIA
There will be a range of support measures for businesses impacted by the lockdowns.
This includes:
A cash flow support payment
COVID-19 business support grants
Payroll tax waivers
Commercial tenancy changes
Support for businesses with turnover between $30,000 to $75,000
Cash Flow support payment
Under the Cash Flow Support Payment, eligible entities will receive 40 per cent of their NSW payroll payments. The
payment will be between $1500 to $10,000 per week based on their payroll (with $1500 being the minimum
payment). For non-employing businesses, such as sole traders, the payment will be $1000 per week.
Entities will be eligible if:
their turnover is 30 per cent lower than an equivalent two-week period in 2019
their annual turnover is between $75,000 and $50 million
they maintain their full time, part time and long-term casual staffing level as of 13 July 2021
The assistance will cease when current lockdown restrictions are eased or when the Commonwealth hotspot declaration is removed. Businesses can register their interest from 14 July 2021 at www.service.nsw.gov.au.
COVID-19 business support grants
The amount of the support under the COVID-19 business support grants will depend on the depend on the decline in turnover experienced during the lockdown, with:
$15,000 for those that experience a 70 per cent or higher decline in turnover
$10,500 for those that experience a 50 to 69 per cent decline in turnover
$7500 for those that experience a 30 to 49 per cent decline in turnover.
To be eligible, the business must have:
an annual turnover of more than $75,000
annual Australian wages up to $10 million
an ABN registered in NSW or be able to demonstrate they are physically located and primarily operating in NSW.
We expect that all applicants for the $15,000 payment will be required to include a letter from an independent accountant showing their decline in turnover calculation in their application. We also expect that businesses not in a ‘highly impacted industry’ will also require an accountant’s letter regardless of the payment requested ($7500 or $10,500). Grant applications will open on 19 July 2021.
Please click here for more information on COVID-19 Business Support Grants.
Payroll tax waivers
Entities with Australian wages of between $1.2 million and $10 million that have experienced a 30 per cent decline in turnover will receive a payroll tax waiver of 25 per cent.
Grants for micro business
Businesses with a turnover of between $30,000 and $75,000 which experience a decline in turnover of 30 per cent will be eligible for a $1500 payment per fortnight of restrictions.
Commercial tenancy changes
• Commercial and retail landlords will need to attempt mediation before recovering a security bond or locking out or evicting a tenant impacted by the Public Health Order.
• Land tax relief equal to the value of rent reductions provided by commercial, retail and residential landlords to financially distressed tenants, up to 100 per cent of the 2021 land tax year liability
Other
• Deferral of gaming tax assessments for clubs until 21 December 2021 and hotels until 21 January 2022
• capped grant of up to $1500 for residential landlords who are not liable to pay land tax who reduce rent for tenants
Support for workers
The Federal Government is offering a COVID-19 Disaster Payment for workers unable to earn income due to a COVID-19 lockdown. People who lost less than 20 hours of work, will receive $325. People who lost 20 hours or more of work, will receive $500.
From week four of a lockdown, the payment will increase to:
$600 each week if a person has lost 20 hours or more of work a week, or
$375 each week if a person has lost between 8 and 20 hours of work.
People may be eligible if all the following apply:
you can’t attend work and lost income on or after day 8 of COVID-19 restrictions
you don’t have access to appropriate paid leave entitlements through your employer
you’re not getting an income support payment, a state or territory pandemic payment, Pandemic Leave Disaster
Payment or state small business payment for the same period.
People will be eligible for the payment, including where they are still working, provided they have lost more than 8 hours or a full day of work.
From the third week of lockdown, applicants will no longer be required to declare they have less than $10,000 in liquid assets to be eligible for the payment.
The Commonwealth will make the Payment a recurring payment for approved recipients for as long as the Commonwealth declared hotspot and lockdown restrictions remain in place. Recipients don’t need to re-claim for each seven-day period of a lockdown.
At present people residing in Greater Sydney are eligible. The NSW Government will cover the cost of making the Payment available to eligible people in other parts of NSW