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COVID-19 JobSaver payment

- Clarity provided regarding

relationship between the

Business Grant and JobSaver

 

Please find below the information that is currently available regarding the support package. 

Highlights, bolding and underlines are ours.

https://www.nsw.gov.au/covid-19/businesses-sole-traders-and-small-not-for-profits#covid-19-business-grants
 

Clarity has now been provided on the website regarding the link between the Business Grant and JobSaver Scheme.

The 2021 COVID-19 Business Grant ('the Grant') will provide cash flow support to businesses for the first 3 weeks of the Greater Sydney lockdown (from 26 June to 17 July), and the JobSaver scheme will support businesses for the period from 18 July 2021.

 

 

 

 

 

Published: 04/08/2021 17h00

COVID-19 JobSaver payment

 

EB&A comment.

Highlights, bold and underlines are ours.

We recommend that you read through the document per the below link.  It is a very detailed and long webpage and so too long to summarise for this article.

https://www.service.nsw.gov.au/jobsaver-payment-guidelines

Please note - list of highly impacted businesses is wider than the list currently being used for the COVID-19 business grant.

Please note - although a number of the dates are the same as the other programs, eg, historical revenue testing of 2020 and 2019, some other dates are different and will impact the application as well as the payments received.  Please ensure you understand the date impacts.

Applications will close at 11:59pm on 18 October 2021.

JobSaver will provide cash flow support to impacted businesses to help maintain their NSW employee headcount on 13 July 2021.

 

Eligible businesses and not-for-profit organisations with employees will receive fortnightly payments backdated to cover costs incurred from week 4 of the Greater Sydney lockdown (from 18 July 2021 onwards).

 

The payment will be equivalent to 40% of the weekly payroll for work performed in NSW:

  • minimum payment will be $1,500 per week

  • maximum payment will be $10,000 per week.

 

Weekly payroll should generally be determined by referring to the most recent Business Activity Statement (BAS) provided to the Australian Taxation Office (ATO) before 26 June 2021 for the 2020-21 financial year.

If you’re a non-employing business, such as a sole trader, you may be eligible to receive a payment of $1,000 per week.

Eligible businesses can use JobSaver to cover business costs incurred from 18 July 2021. These costs may include:

  • salaries and wages

  • utilities and rent

  • financial, legal or other advice

  • marketing and communications

  • perishable goods

  • other business costs.

 

Eligibility

To be eligible for JobSaver you must:

  • have an active Australian Business Number (ABN)

  • demonstrate your business was operating in NSW as at 1 June 2021

  • have had a national aggregated annual turnover between $75,000 and $50 million (inclusive) for the year ended 30 June 2020

  • 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) compared to the same period in 2019

  • for employing businesses, maintain your employee headcount on 13 July 2021 while you continue to receive JobSaver payments

  • for non-employing businesses, such as sole traders, show that the business is the primary income source for the associated person. If you have more than one non-employing business, you can only claim payments for one business.

 

Ineligible businesses

Certain entities, such as those earning passive income (rents, interest, or dividends), government agencies, local governments, banks, and universities are not eligible for JobSaver.

 

See the full list of ineligible businesses in the guidelines.

 

Non-employing businesses are not eligible for the JobSaver payment if anyone associated with the business or who derives income from it, has received a Commonwealth COVID-19 Disaster Payment since 18 July 2021. 

 

What you need

  • A MyServiceNSW Account – you can create one when you start your JobSaver application

  • your proof of identity

  • your valid ABN/ACN number

  • your business banking details for payment

  • evidence of your annual turnover and loss of income

  • Australian income tax return or Notice of Assessment

  • qualified accountant, registered tax agent or registered BAS agent details, where required.

 

Evidence to support eligibility

If your business is on the highly impacted industries list, you’ll be required to:

  • declare that you meet the eligibility criteria

  • declare your employee headcount at 13 July 2021

  • 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.

 

If your business is not on the highly impacted industries list, in addition to the evidence requirements outlined above, you'll need 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.

 

Service NSW can request a combination of the following documents to support its determination of eligibility and use of funds in accordance with JobSaver Terms and Conditions including:

  • accountant’s letter

  • prior BAS statements

  • income tax declarations

  • audited profit and loss statements.

Alternative circumstances

If your business does not meet all the eligibility criteria, you may be able to apply for JobSaver if you can provide evidence to support the alternative circumstances outlined in the guidelines.

There are several circumstances where a business may not meet the eligibility criteria and supporting evidence requirements, but still may be eligible for JobSaver. These circumstances include:

  • businesses not operating for the full year to 30 June 2020 (e.g. new businesses)  

  • businesses affected by drought, bush fires or other natural disasters 

  • business acquisition, disposal, or business restructure that has impacted the business' turnover 

  • a sole trader or small partnership impacted by sickness, injury or leave. 

 

Businesses in these circumstances should contact Service NSW to determine if an alternate comparison period, or alternative supporting evidence, can be applied.

Where a business operates through a trust structure, the applicant will be required to provide additional information to demonstrate a national aggregated annual turnover of between $75,000 and $50 million (inclusive) is derived through the trust. The entity operating the business is eligible for JobSaver, not other entities that are receiving passive income from the business. 

 

Service NSW can request a combination of the following documents to support its determination of eligibility: 

  • accountant’s letter 

  • prior Business Activity Statements 

  • income tax declarations 

  • audited profit and loss statements 

  • receipts and invoices from purchases

  • NSW payroll tax reconciliation returns.

How to apply

Businesses that have applied and are eligible for the 2021 COVID-19 business grant will generally be automatically eligible for JobSaver but must provide further information on employee headcount and payroll. These businesses may be contacted by Service NSW if further information is required. 

  1. Check you meet the eligibility criteria.

  2. Have your documentation and evidence ready for uploading.

  3. Select the ‘Apply online’ button.

  4. Log in, or create your MyServiceNSW Account.

  5. Select and verify your identity documents.

  6. When your identity is verified, select ‘Continue’.

  7. Confirm your personal details.

  8. Enter your business details and answer the eligibility questions, then select ‘Next’.

  9. Provide information about your decline in turnover and upload your supporting documentation, then select ‘Next’.

  10. Enter your bank details, then select ‘Next’.

  11. Review your application.

  12. Check the declaration boxes.

  13. Select ‘Submit’ to complete your application.

 

Note: You cannot save and resume your application once you’ve started.

More information

  • Each ABN can apply for JobSaver only once.

  • Separate businesses under one ABN will not be eligible separately.

  • The relevant COVID-19 restrictions are:

    • Public Health (COVID-19 Temporary Movement and Gathering Restrictions) Order 2021 issued on 26 June 2021

    • stay-at-home order issued on 25 June 2021

    • stay-at-home order issued on 27 May 2021.

  • Employees can receive Commonwealth COVID-19 Disaster Payments if their employer is receiving JobSaver.

  • Successful applications may be subject to an audit.

  • A public reporting channel will be established to allow people to report businesses not adhering to JobSaver guidelines.

  • You'll need to keep all documentary evidence relied upon in your application for a minimum of 5 years.

  • Two proof of identity documents are required

Published: 27/07/2021 17h00