Many business owners are confused what supports available to them during 2021 NSW COVID-19 lockdown. There are three major grants for businesses. Which grant(s) applicable to your business will largely depend on the turnovers of your business for the year ended 30 June 2020.
- Micro Business Grant is for micro-businesses with turnovers between $30,000 and $75,000.
- Business Grant is for businesses with aggregated annual turnovers between $75,000 and $50 million. The grant is a lump-sum payment to cover the business costs for the first three weeks of the lockdown from 26 June to 17 July 2021.
- JobSaver Payment is for businesses with aggregated annual turnover between $75,000 and $250,000 million, or larger businesses in the hospitality, tourism and recreation industries with an turnover more than $250 million and up to $1 billion. It is a continuing support post Business Grant. The application opens on 26 July but with backdated payments starting from 18 July 2021. The objective of JobSaver Payment is to help businesses save jobs to support the economy after restrictions are lifted.
If you have not already set up a MyServiceNSW Account and updated Business Profiles, you will need it for the applications of the grants. To register, please click here.
If you need any assistance on the applications, eligibility assessments and an accountant letter for business-related grants, please make bookings via the dedicated NSW COVID-19 Support Grants Booking Link. Advisor fees will be applicable. Our services will be prioritised based on the booking orders.
JobSaver Payment
Who
For the businesses, sole traders and not-for-profit organisations in NSW with an aggregated annual turnovers between $75,000 and $250 million inclusive for the year ended 30 June 2020. Under the extension to the JobSaver scheme, larger businesses in the hospitality, tourism and recreation industries with an turnover more than $250 million and up to $1 billion may be eligible for a larger weekly payment.
Turnover period
Decline in turnover for a minimum 14-day consecutive period between 26 June 2021 to 26 August 2021 inclusive, compared to:
- the same period in 2019, or
- the same period in 2020, or
- the 2-week period immediately before the Great Sydney lockdown commended (12 – 25 June 2021).
Turnover declined percentage
30% or more
How much do you get
For a non-employing business, such as s sole trader, the payment is $1,000 per week.
For an employing business, the payment is equivalent to 40% of weekly payroll for work performed in NSW with,
- The minimum payment of $1,500 per week, and
- The maximum payment of $100,000 per week.
When can you apply
Applications are open on 26 July 2021 and close at 11:59pm on 18 October 2021.
What to provide
The documents required depend on if your businesses are in the highly impacted industry list.
Highly impacted industry
- Declarations of meeting the eligibility criteria, employee headcount for employing business or primary income source for non-employing business.
- 2020 income tax return or Notice of Assessment.
- Providing details of a qualified accountant, BAS agent or Tax Agent for compliance checking.
- Providing evidence of weekly payroll.
- Other supporting documents as required.
Non-highly impacted industry
- Declarations of meeting the eligibility criteria, employee headcount for employing business or primary income source for non-employing business.
- 2020 income tax return or Notice of Assessment.
- A letter from a qualified accountant, BAS agent or Tax Agent.
- Providing evidence of weekly payroll.
- Other supporting documents as required.
How to apply
Service NSW will deliver the grant on behalf of the NSW Government. Please set up a MyServiceNSW Account and Business Profiles.
When do I get paid
Once eligible, business will receive fortnightly payments with the first payment backdated to 18 July, and where possible, will be made within 10 business days.
Important things to keep in mind
- You are NOT eligible for this grant if ABN was registered after 1 June 2021.
- You are NOT eligible for this grant if your business primarily earns passive income (rent, interest, or dividends).
- If you are a sole trader, you are NOT eligible for BOTH the NSW COVID-19 JobSaver Payment and the Commonwealth COVID-19 Disaster payment. If you have received Disaster payment since 18 July 2021 as a sole trader, you are not eligible for this grant.
- You can be eligible for BOTH JobSaver Payment and Business Grant. If you are not previously eligible for Business Grant, you may be still eligible for JobSaver Payment.
- If you’re a non-employing business, such as a sole trader, to be eligible, you have this business as your primary income source. You can only claim payment for one business if you have multiple businesses.
- If you’re an employing business, including a director but also employee, to be eligible, you must maintain your employee headcount as at 13 July 2021 while receiving payments from this grant. Your employees can receive Commonwealth COVID-19 Disaster Payment.
- For the grant purpose, the wages are only relevant to the employees who usually work or are based in NSW. Weekly payroll should be referred to the most recent BAS prior to 26 June 2021 for the 2020-2021 financial year, likely to be March 2021 BAS or equivalent. The wages are those subject to PAYG withholding tax, including allowances, director fees, etc but excluding super contributions or contactors under voluntary agreements.
- Successful applications may be subject to audits and you will need to keep all documentary evidence for a minimum of 5 years.
Alternative circumstances
There are several circumstances, such as new business etc., not meeting the eligibilities in the guideline. Those businesses should contact Service NSW to determine if alternative comparison period, or alternative supporting evidence, can be applied.
For full information on COVID-19 JobSaver Payment, please click here.
Please note that the material and contents provided are informative in nature only. It is not intended to be advice and you should not act specifically on the basis of this information alone. If expert assistance is required, professional advice should be obtained.