NSW COVID Support Packages - July 2021
Considering the most recent Covid-19 lockdowns impacting Greater Sydney, the New South Wales and Commonwealth Governments have recently announced a range of economic stimulus packages and policies to support businesses and employees during these times.
The following is a summary of the available support packages. Please stay tuned to our blog as we bring you more available updates.
1. Employment Protection
In a bid to protect employment rates, the NSW and Commonwealth Government will be distributing cash flow boosts of amounts up to $10,000 per week. This measure is set to be available from next week and it will be available to non-employing and employing entities, including not-for-profits. Eligibility Criteria:
30% decrease in turnover compared to and equivalent to a two-week period in 2019
Maintain full-time, part-time and long-term casual staffing levels as of 13 July 2021
Businesses with annual turnover between $75,000 and $50 million
The payment rate will be based on 40% of the NSW payroll payments and sole traders will have the payment capped at $1,000 per week.
The payments will be administered by Service NSW. 2. Halt on Evictions
Businesses that have lost 25% or more of their annual revenue will be protected from forced evictions. 3. Deferred Payroll Tax Businesses that pay less than $10 million in payroll will be granted a two-month extension to honour their payroll tax payables. 25% Reduction in Annual Payroll Tax Liabilities
Payroll tax customers who have between $1.2million to $10 million in Australian wages will have their annual tax liability reduced by 25% when lodging their annual reconciliations. These customers must be able to prove a 30% decrease in turnover. 4. Covid-19 Business Grant From 19 July 2021, eligible businesses with wages below $10 million that have been affected by lockdowns may be able to claim the following grants: Reduction in Turnover Available Grant : - 30% or more $7,500.00 - 50% or more $10,500.00 - 70% or more $15,000.00 This aims to assist with ordinary business expenses i.e. rent, utilities and wages.
5. Micro Business Grant Micro-businesses (small businesses/sole traders with annual turnovers between $30,000 - $75,000) may be eligible for a payment of up to $1,500 per fortnight from July 2021 if they experience a decline in turnover of 30%. 6. Landlords Residential landlords who are not liable to pay land tax who reduce rent for tenants may be eligible for a capped grant of $1,500.
Land tax relief may be available to the value of rent reductions provided by commercial, retail and residential landlords to financially distressed tenants, up to 100% of the 2021 land tax liability.
7. Covid-19 Disaster Payment
The government has also announced a covid-19 disaster payment for employees who have lost 8 or more hours of work. The payments are as follows:
- 8 – 20 hours lost $375.00 / week
- 20 hours or more $600.00 / week
Criteria :
- Australian resident - 17 or older
- Individual not receiving income support payments or Pandemic Leave Disaster Payment
- Individual lives, works or visited a Commonwealth-declared hotspot
- Individual had paid employment and because of Covid-19 hotspot restrictions you cannot attend work on or after the eight day
- Individual does not have appropriately paid entitlements and has in fact lost income
Liquid Asset Test
Weeks 1-2, the individual must have liquid assets of less than $10,000
Weeks 3 and beyond, the liquid asset test does not apply
How to prepare? Ensure business and contact details are up to date with our firm and consequently the Australian Business Register (ABR)
Ensure your personal, contact and business details are up to date in your MyService NSW Account and Business Profile
If you do not have one already, create a MyService NSW Account and Business Profile
Register your interest for notifications when the programs become available here: https://www.service.nsw.gov.au/covid-19-business-support-2021 We understand that these can be difficult times and with the grants being announced on an irregular basis it can be difficult to track. The above policies will have more defined information and criteria released in the coming weeks. As such, we will continue to keep you updated on the relevant information.
If you need any assistance with the NSW COVID-19 Support Packages application, please feel free to contact us at :
I H Professionals & Co Pty Ltd
Level 17, 9 Castlereagh Street SYDNEY NSW 2000
Email: info@ihprofessionals.com.au
Tel: 02 8041 8276
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