SYDNEY LOCKDOWN GOVT SUPPORT - Individuals & Businesses (NSW)
**UPDATED 13 AUGUST 2021*
We have summarised the ever changing government support payments below (sorted into one off grants and ongoing payments) and the details are current as at the above date.
Sole traders can be eligible for more than one ongoing payment so it is important you choose the one that is going to be the most suitable for you. Businesses can claim a one off grant as well as ongoing payments.
Here is a summary of individuals vs sole traders vs other businesses to highlight which one/s you may be eligible for.
ONE OFF GRANTS FOR BUSINESSES (INC SOLE TRADERS)
Who: Businesses and sole traders who had a turnover of more than $75,000 per annum for the year ending 30 June 2020 and total annual Australian wages below the NSW Government 2020-21 payroll tax threshold of $1.2 million as at 1 July 2020.
Businesses must have fewer than 20 full-time equivalent employees and an Australian Business Number (ABN) registered in NSW or be able to demonstrate they are physically located and primarily operating in NSW.
Business must have been registered for GST on or before 1 June 2021. If your business was registered for GST after 1 June 2021 You may still apply. Service NSW may request further documents to assess your application.
When: Apply from 19th of July 2021 and close at 11:59pm on 13 September 2021.
What: If you’re a business, sole trader or not-for-profit organisation impacted by the current Greater Sydney COVID-19 restrictions. It will support businesses with cash flow for the first 3 weeks of the Greater Sydney lockdown which started on 26 June 2021.
Grants can be used for business expenses such as rent, utilities and wages, for which no other government support is available.
Three different grant amounts will be available depending on the decline in turnover experienced during the restrictions
The decline in turnover of 30% or more due to the Public Health Order over a minimum 2-week period from 26 June 2021 to 17 July 2021 compared to:
the same period in 2019, or
the same period in 2020, or
the 2-week period immediately before the Greater Sydney lockdown commenced (11 June to 25 June 2021)
$7,500 for a decline of 30% or more (increased - was previously $5,000)
$10,500 for a decline of 50% or more (increased - was previously $7,000)
$15,000 for a decline of 70% or more (increased - was previously $10,000)
**Non-employing businesses are not eligible to apply if persons associated with the business, and who derive income from it, have applied for, or are receiving, the Commonwealth COVID-19 Disaster Payment.**
Turnover is based on G1 of your BAS.
Businesses that cannot demonstrate the minimum $75,000 aggregated annual turnover or the minimum decline in turnover should contact Service NSW as they may still be eligible to apply if they:
were not operating for the full year to 30 June 2020 (e.g. they are a new business) but can demonstrate income consistent with $75,000 per annum over a shorter period prior to 26 June 2021, and they can demonstrate they have been significantly impacted by the Public Health Orders, or
If your turnover in June/July 2019 is not representative of your usual or average turnover (e.g. due to drought or bushfires) which is usually $75,000 per annum or more, and you can demonstrate they have been significantly impacted by the Public Health Orders you will be able to do so when you apply.
If you cannot use 2019 as a comparison period you can use a comparable period during the first 3 quarters of the 2020-21 financial year.
If your your 2020 tax return does not show $75K turnover you can submit one quarterly (or 3 individual monthly) business activity statement (BAS) to demonstrate turnover of between $75,000 and $50 million. The reported turnover will be annualised.
How: Through Service NSW
What you will need:
You will be required to:
declare that you meet the eligibility criteria
provide details of your qualified accountant, registered tax agent or registered BAS agent
submit an Australian income tax return, Notice of Assessment or other documentation demonstrating the business had an aggregated annual turnover between $75,000 and $50 million (inclusive) for the year ended 30 June 2020
lodge other supporting documents as required to demonstrate you meet the eligibility criteria.If you're eligible for the $15,000 grant, to receive the full amount, you must submit evidence that you experienced the relevant decline in turnover in the specified period. See the guidelines for more information.
You will be required to:
declare that you meet the eligibility criteria
submit evidence that you experienced the relevant decline in turnover in the specified period
submit an Australian income tax return, Notice of Assessment or other documentation demonstrating the business had an aggregated annual turnover between $75,000 and $50 million (inclusive) for the year ended 30 June 2020
lodge other supporting documents as required to demonstrate you meet the eligibility criteria.
submit a letter from a qualified accountant, registered tax agent or registered BAS agent, using the template provided.
Hospitality and Tourism COVID-19 Support Grant
Who: Tourism or hospitality businesses that had a turnover of more than $75,000 for the year ending 30 June 2020 and total annual Australian wages below $10 million, as at 1 July 2020.
Businesses must have an ABN registered in NSW or be able to demonstrate they are physically located and primarily operating in NSW.
When: Apply from end of July 2021
What: as above
How: Through Service NSW
ONGOING PAYMENTS FOR BUSINESSES (INC SOLE TRADERS)
Who: Businesses with turnover between $75,000 and $50 million who have experienced a decline in turnover of 30% or more due to the Public Health Order over a minimum 2-week period within the Greater Sydney lockdown (commenced 26 June and due to end 28 August 2021) compared to:
the same period in 2019, or
the same period in 2020, or
the 2-week period immediately before lockdown commenced (11 to 25 June 2021)
Eligible entities will be required to maintain their full time, part time and long term casual staffing level as of 13 July 2021 (if not a sole trader with no employees).
Must have had an ABN as at 1 June 2020.
When: Apply from 26th July 2021
What: Payments of between $1,500 and $10,000 per week based on the level of their payroll (to a max of 40% of payroll) from wk 4 of lockdown/ 27 July.The assistance will cease when current lockdown restrictions are eased or when the Commonwealth hotspot declaration is removed.
$1,000 per week for businesses including sole traders with no payroll.
How: Through Service NSW
What you will need:
You will be required to:
declare that you meet the eligibility criteria
if you have employees, declare that you will maintain your employee headcount on 13 July 2021 for the period for which you will receive JobSaver payments. Service NSW must be notified if the headcount declines over the payment period
if you do not have employees, declare that the business is the primary income source for the owner of the business
submit an Australian income tax return, Notice of Assessment or other documentation demonstrating the business had a national aggregated annual turnover between $75,000 and $50 million (inclusive) for the year ended 30 June 2020
provide details of your qualified accountant, registered tax agent or registered BAS agent
provide evidence of weekly payroll
lodge other supporting documents as required to demonstrate you meet the eligibility criteria.
You will be required to:
submit a letter from a qualified accountant, registered tax agent or registered BAS agent, using the template provided, to demonstrate that you experienced a decline in turnover over a minimum 2-week period within the Greater Sydney lockdown (commenced 26 June) compared to the same period in 2019.
Who: Businesses with turnover between $30,000 and $75,000 and have experienced a decline in turnover of 30% or more due to the Public Health Order over a minimum 2-week period within the Greater Sydney lockdown (commenced 26 June 2021 and due to end 28 August 2021), compared to:
the same period in 2019, or
the same period in 2020, or
the 2-week period immediately before the Greater Sydney lockdown commenced (11 June to 25 June 2021)
- Must be main source of income
- Must maintain your employee headcount as at 13 July 2021 while receiving payments from this grant, if you're an employing business
When: Apply from 26 July 2021
What: Payments of $1,500 per fortnight back paid to the start of lockdown.
How: Through Service NSW
ONGOING PAYMENTS FOR INDIVIDUALS (INC SOLE TRADERS)
Who: Individuals & sole traders (sole traders may be eligible for other payments so ensure you choose the best one for your circumstances as you cannot claim more than one).
When: Apply from the second week of lockdown (5 July 2021)
What: This is a weekly payment to help workers unable to earn income due to a COVID-19 lockdown, hotspot or period of restricted movement for each week of lockdown.
You may be eligible if all of the following apply:
you can’t attend work and lost income on or after day 8 of a COVID-19 restriction of movement event
you don’t have access to appropriate paid leave entitlements through your employer
you’re not getting an income support payment, ABSTUDY Living Allowance, Dad and Partner Pay or Parental Leave Pay
you're not getting a state or territory pandemic payment, Pandemic Leave Disaster Payment or state small business payment for the same period.
Removed from week 3 - you have $10,000 or more liquid assets (cash in bank)
Worked at least 8 hours per week before the lockdown (can be 7.5hours if that is your usual work day)
For 20 hours or more lost per week - Payment of $750 from 2nd August - Payment of $600 from 19th - 30th July - Payment of $500 from 5th - 16th July
For 8 - 19 hours lost per week - Payment of $450 from 2nd August - Payment of $375 from 19th - 30th July - Payment of 325 from 5th - 16th July
A hotspot is an area of COVID-19 local transmission declared by the Chief Medical Officer. The Department of Health website lists the current hotspots.
How: Through My.Gov
Pandemic Leave Disaster Payment
Who: Individuals if NSW Health has told you to self-isolate or quarantine. They need to give you these directions for any of the following reasons:
you have coronavirus (COVID-19)
you’ve been in close contact with a person who has COVID-19
you care for a child, 16 years or under, who has COVID-19
you care for a child, 16 years or under, who’s been in close contact with a person who has COVID-19.
You may also be eligible if you're caring for someone who has COVID-19.
You must also meet all of the following:
you’re at least 17 years old and live in New South Wales
you’re an Australian resident or hold a visa that gives you the right to work in Australia
you're unable to go to work and earn an income
you have no appropriate leave entitlements, including pandemic sick leave, personal leave or leave to care for another person
your period of quarantine is after 17 September 2020.
If you’re a member of a couple, you can both claim this payment. You and your partner will need to complete separate claims.
When: Now
What: Pandemic Leave Disaster Payment is a lump sum payment of $1,500 to help you during the 14 days you need to self-isolate, quarantine or care for someone. If you need longer term help, check to see what other payments you may be eligible to get by using the payment guide. The Pandemic Leave Disaster Payment is for people living in New South Wales who can't earn an income because they must self-isolate, quarantine or care for someone who has COVID-19.
How: Through My.Gov
OTHER SUPPORT AVAILABLE
Rent Relief
Support for commercial tenants
- no lockouts for 60 days
- reduction in land tax for landlords (to 100%) for providing rental relief
Support for residential tenants
- no lockouts for 60 days
- no evictions reduction in income 25%
- reduction in land tax for landlords (to 100%) for providing rental relief or $1500 payment for those that don't pay land tax
Fees and Charges Rebate
Who: Small businesses (including non-employing sole traders) and not-for-profit organisations must:
have total Australian wages below the NSW Government 2020-2021 payroll tax threshold of $1.2 million
have an Australian Business Number (ABN) registered in NSW and/or have business premises physically located and operating in NSW.
When: Apply from now until 30 June 2022.
What: Fees and charges paid to NSW and local government from 1 March 2021 to 30 June 2022 up to $1500 - full list here
How: Through Service NSW
Payroll Tax Waivers
Payroll tax waivers of 25 per cent for businesses with Australian wages bills of between $1.2 million and $10 million that have experienced a 30 per cent decline in turnover, as well as payroll tax deferrals and interest free repayment plans.
NEXT STEPS
•Get your books reconciled & up to date
•Setup an account with Service NSW or Centrelink (if you haven’t already)
•Register your interest with Service NSW to be notified when new information is released/applications are open
•Get Xero setup if you don’t have an accounting system
•Get your business registered for STP (excluding sole traders)
•Like our FB page for updates - www.facebook.com/twosideshq
•Join our FB support group for businesses https://www.facebook.com/groups/Gr8mindsnetwork
• Sign up to our mailing list to receive our updates
If you would like to have a chat about your individual circumstances and which government payments you may be eligible for you can book a call here (if you are not a client - existing clients have been sent a free call link).
Natalie Lennon
Founder & Director
Two Sides Accounting
02 9030 0269
www.twosides.com.au
@twosidesHQ
natalie@twosides.com.au
https://twitter.com/nat_lennon
https://au.linkedin.com/in/natalielennon