As NSW and Victoria are facing another period of lockdown, the government has announced another round of COVID business support payments. Here is a summary of the announcements so far:
Businesses, sole traders and small not-for profits
- COVID-19 Business Grants – Available to businesses with turnover between $75,000 and $50 million who are able to demonstrate a decline in turnover of 30% for a minimum 2-week period, compared to the same period in 2019. Grant amounts between $7,500 to $15,000 are available depending on the decline in turnover. Applications open 19 July 2021. Additional conditions for eligibility can be found at the Service NSW Website.
- JobSaver – Fortnightly payments to businesses to help maintain employee numbers. Payment of 40% of payroll with minimum payment of $1,500 up to maximum of $100,000 per week. Paid to businesses and not-for-profits as long as they maintain their staffing level as of 13 July 2021. Non-employing businesses can receive $1,000 per week. Businesses must be able to demonstrate a 30% decline in turnover. Applications are open from 26 July 2021 and are backdated to 18 July 2021.
- COVID-19 Micro Business Grants – Fortnightly payment for businesses with turnover between $30,000 and $75,000. Payment of $1,500 per fortnight. Must be able to show a decline in turnover of 30% or more. Provides support for businesses that provide the primary source of income for a person associated with the business. Applications open 26 July 2021.
- Payroll Tax deferrals and concessions – Businesses that are liable for payroll tax can defer payment on the 2020-21 Annual Reconciliation and July and August 2021 monthly return until 7 October 2021. Interest free payment plans are available for up to 12 months. There is also a 25% reduction in payroll tax for 2021-2022 available where there has been a 30% decline in turnover and wages up to $10 million. More information is available from the Revenue NSW website.
You can register your interest in the above support measures with Service NSW.
Residential and Commercial Landlords and Tenants
- Eviction moratorium for residential tenants – A moratorium is in place until 11 September 2021 to restrict when landlords are able to evict tenants if the tenant has suffered a 25% loss of income due to COVID-19.
- Landlords leasing residential properties – Residential landlords who have been impacted by tenants who are unable to pay rent can apply for a grant of up to $1,500 per tenancy agreement. This is provided they reduce the rent for COVID-19 impacted tenants and the tenant must have lost 25% of their income. There is also land tax relief for landlords who provide rent relief to financially distressed tenants of up to 100% of land tax. The landlord can claim the grant payment or the COVID-19 land tax benefit, but not both.
- Tenants in Commercial or Retail Premises – Protection has been offered to tenants who are eligible for the Micro-business COVID Support Grant, the COVID-19 NSW Business Grant or the JobSaver Scheme. Landlords will have restrictions on evicting tenants in these circumstances without first going to mediation.
- Landlords leasing commercial premises – Landlords with commercial properties who have tenants in financial distress are eligible to apply for land tax concession if they provide rent reductions to their tenants. There is a concession of up to 100% of 2021 land tax. Available where the tenant is eligible for the Micro-business COVID Support Grant, the COVID-19 NSW Business Grant or the JobSaver Scheme.
- COVID-19 Disaster Payment – Available to individuals in the lockdown area or affected by the Lockdown. For those in Sydney and NSW locations from 18 July 2021, payment of $600 per week is available if a person has lost 20 hours or more of work a week and $375 if a person has lost between 8 and 20 hours per week. The payment will increase again to $750 and $450 respectively from 25 July 2021. Payment is made for areas where a public health lockdown or period of restricted movement has occurred for more than 7 days or where the area has been declared a COVID-19 hotspot.
- Pandemic Leave Disaster Payment – Support if you live in NSW and you are not able to earn income because you are required to self-isolate or quarantine or need to care for someone with COVID-19.
Further information on eligibility criteria is available from the Service Australia website.
- Business Continuity Fund – Payments of $5,000 will be made to eligible businesses that are still affected by capacity limits. Available to businesses that received the previous Business Costs Assistance Program. Businesses that will be eligible include restaurants, cafes, bars, event suppliers, tourism and accommodation providers and non-essential retail businesses. Further information is available from Business Victoria.
- Small Business COVID Hardship Fund – New funding to support small business that have not previously been eligible to receive funding under existing business support packages. Available for small businesses with payroll up to $10 million who have experienced a 70% or greater reduction in revenue.
- COVID-19 Disaster Payment – Workers affected by COVID-19 restrictions will now be eligible for the same payments as those provided by the Commonwealth Government to NSW workers. Applications can be made through Services Australia.
- Commercial Tenancies Relief Scheme – Package funded by the Victorian Government to support landlords to provide rent relief to their tenants. Available to businesses with turnover less than $50 million who have suffered a 30% decline in turnover.
- Alpine Business Support Program – Grants between $5,000 and $20,000 to support businesses in the Alpine region to help with reduction in income due to restricted travel during peak winter season.
- Licensed Hospitality Venue Fund – Grants of up to $20,000 to support licensed venues who have been impacted by the current restrictions.
Further information on these measures can be found on the Business Victoria website.
The Australian Banking Association has indicated further support for businesses affected by lockdowns. Support measures available on application include:
- Up to 3 month loan repayment deferrals and loan terms extended
- Available to small business customers with turnover less than $5 million and lending less than $3 million
- Available for loans that are currently on good standing.
Further information is available from the Australian Banking Association website.
It’s important to ensure your bookkeeping is up to date so you can take advantage of these support measures as they become available.
If you need assistance with getting your books up to date or applying for the business support packages, please get in touch.