The lockdown is expected to wipe $2b off Australia’s GDP. In response, the Government will release grants between $5,000 and $10,000 for small businesses and additional payroll tax deferrals for all employers.
The grants are split into two streams to cover small businesses as well as tourism providers impacted by the lockdown over the school holiday break.
Businesses can apply for grants through Service NSW later in July, and will need to show a decline in turnover across a minimum two-week period after restrictions commenced on June 26.
Small Business COVID-19 Support Grant
This grant will be available to businesses and sole traders with more than $75,000 turnover but below the NSW Government 2020-21 payroll tax threshold of $1.2m as at 1 July 2020.
Businesses must have less than 20 full time equivalent workers, have an Australian Business Number (ABN) registered in NSW, or be able to demonstrate they are physically located and operating in NSW.
Hospitality and Tourism COVID-19 Support
This grant will be available to tourism or hospitality businesses with more than $75,000 in turnover and an annual Australian wages bill of below $10m, as at 1 July 2020.
Similarly to the Small Business COVID-19 Support Grant, to be eligible businesses must have an ABN registered in NSW, or be able to demonstrate they are physically located and operating in NSW.
Decline in turnover
Both grants will be available based on the decline in turnover experienced during the current restrictions.
Decline in turnover (%)
|
Grant available
|
|
70%
|
$10,000
|
|
50%
|
$7,000
|
|
30%
|
$5,000
|
It is unclear how the comparison will be made (eg expected turnover or actual turnover for a comparable period). As mentioned by the Treasurer in the press conference, proof of decline of turnover is expected to be in the form of an accountant’s letter, and so any assistance we can provide in that regard, please let us know.
Payroll Tax and Gaming Machine Tax
The Government has provided optional payroll tax deferrals for payments due in July, and a deferral of hotel June quarter gaming machine tax. We expect Revenue NSW will make a further statement about when the payments are required to be paid, but there is indication there will be at least some arrangements determined on a case by case basis.
Other relief measures
- Dine & Discover vouchers for takeaway from eligible and registered business (however food must be delivered direct to the home by the restaurant, and cannot be redeemed by using third party delivery platforms). A one-month extension until 31 August 2021 has also been provided.
- $11m for people at risk of homelessness, vulnerable temporary visa holders, asylum seekers and refugees.
- A COVID-19 Disaster Payment will be available from 1 July 2021 for eligible individuals in a Commonwealth-declared COVID-19 hotspot in Sydney.
We understand that the intention is that businesses can access the payments via the Services NSW website from 19 July.
