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New COVID-19 support package for small businesses in NSW

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Published by:
David Armstrong
Published on:
June 29, 2021
Modoras Accounting (SYD) Pty Ltd ABN 18 622 475 521
New COVID-19 support package for small businesses in NSW

The New South Wales Government has announced a new support package for small businesses impacted by the state’s current COVID-19 restrictions.

The package includes:

  • small-business and hospitality and tourism support grants
  • payroll tax deferrals for all employers
  • extension of the Dine & Discover program.

In a statement, NSW Premier Gladys Berejiklian said the package would help alleviate cashflow constraints while trading is restricted.

She said the grants could be used for business expenses such as rent, utilities and wages, for which no other government support is available.

Small Business COVID-19 Support Grant

Who can apply

Businesses and sole traders with a turnover of more than $75,000 per annum but below the NSW Government’s 2020–21 payroll tax threshold of $1.2 million as at 1 July 2020.

These businesses must have fewer than 20 full-time equivalent employees and an ABN registered in NSW or be able to demonstrate they’re physically located and primarily operating in the state.

They’ll need to show a decline in turnover across a minimum two-week period after the commencement of major restrictions on June 26.

Full criteria will be available in coming days on the Service NSW website.

Amounts

  • $5,000 (for businesses that have experienced a 30% decline in turnover)
  • $7,000 (50% decline in turnover)
  • $10,000 (70% decline in turnover).

Applications open

Businesses will be able to apply for the grants through Service NSW from later in July.

Hospitality and Tourism COVID-19 Support Grant

Who can apply

Tourism or hospitality businesses with a turnover of more than $75,000 and an annual Australian wages bill of below $10 million, as at 1 July 2020.

These businesses must have an ABN registered in NSW or be able to demonstrate they’re physically located and primarily operating in the state.

They’ll need to show a decline in turnover across a minimum two-week period after the commencement of major restrictions on June 26.

Full criteria will be available in coming days on the Service NSW website.

Amounts

  • $5,000 (for businesses that have experienced a 30% decline in turnover)
  • $7,000 (50% decline in turnover)
  • $10,000 (70% decline in turnover).

Applications open

Businesses will be able to apply for the grants through Service NSW from later in July.

Payroll tax deferrals for all employers

Employers will have the option of deferring their payroll tax payments due in July 2021, as well as hotel June-quarter gaming-machine tax.

The Chief Commissioner of State Revenue will be able to provide for repayment arrangements on a case-by-case basis.

Extension of the Dine & Discover program

Dine & Discover vouchers will be extended for one month until 31 August 2021 to allow people more time to use them.

The vouchers can be used for takeaway from eligible and registered Dine businesses during the restriction period, but food must be delivered direct to the home by the restaurant or café and not picked up.

Dine & Discover vouchers cannot be redeemed for takeaway using third-party delivery platforms (e.g. Uber Eats, Menulog).

More information about the extension will be available shortly on the Service NSW website

Applying for a government support grant can be overwhelming. We want to make sure you are aware of what financial support is available that you may be entitled to. Make the most of Covid-19 support payments by watching the webinar on-demand here. 

IMPORTANT INFORMATION: This blog has been prepared by Modoras Accounting (SYD) Pty. Ltd. ABN 18 622 475 521. The information and opinions contained in this blog is general information only and is not intended to represent specific personal advice (Accounting, taxation, financial, insurance or credit). No individuals’ personal circumstances have been taken into consideration for the preparation of this material. The information and opinions herein do not constitute any recommendation to purchase, sell or hold any particular financial product. Modoras Accounting (SYD) Pty. Ltd. recommends that no financial product or financial service be acquired or disposed of or financial strategy adopted without you first obtaining professional personal financial advice suitable and appropriate to your own personal needs, objectives, goals and circumstances. Information, forecasts and opinions contained in this blog can change without notice. Modoras Accounting (SYD) Pty. Ltd. does not guarantee the accuracy of the information at any particular time. Although care has been exercised in compiling the information contained within, Modoras Accounting (SYD) Pty. Ltd. does not warrant that the articles within are free from errors, inaccuracies or omissions. To the extent permissible by law, neither Modoras Accounting (SYD) Pty. Ltd. nor its employees, representatives or agents (including associated and affiliated companies) accept liability for loss or damages incurred as a result of a person acting in reliance of this publication. Liability limited by a scheme approved under Professional Standards Legislation.

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