COVID-19 Micro Business Grants
- update on rules, eligibility
and applications
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.
Grant requires proof that revenue has decreased by 30% during lockdown directly as a result of the lockdown.
The comparative periods are a little generous compared to the Service NSW Business Grant.
If you’re a micro-business (small business, sole trader or not-for-profit organisation with aggregated annual turnover between $30,000 and $75,000) impacted by the recent COVID-19 restrictions, you may be eligible to apply for a fortnightly payment of $1,500 to cover business expenses for the duration of the Greater Sydney lockdown.
Eligible applicants can use the grant for business costs incurred from 1 June 2021 and for which no other government support is available.
Applications will close at 11:59pm on 18 October 2021.
Eligibility
To be eligible for the grant, you must:
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have an active Australian Business Number (ABN) registered in, or demonstrate your business was primarily operating in, NSW as at 1 June 2021
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have had aggregated annual turnover between $30,000 and $75,000 for the year ended 30 June 2020
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have experienced a decline in turnover of 30% or more due to the public health orders over a minimum 2-week period within the Greater Sydney lockdown (commenced 26 June 2021 and due to end 30 July 2021), compared to the same period in 2019 (ie 26 June 2019 and 30 July 2019)
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have business costs for which no other government support is available
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have not applied for either the 2021 COVID-19 business grant or the JobSaver payment
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maintain your employee headcount as at 13 July 2021 while receiving payments from this grant, if you're an employing business
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have this business as your primary income source, if you're a non-employing business such as a sole trader.
Certain entities, including those primarily earning passive income (such as rents, interest or dividends) or those with an ABN registered after 1 June 2021, are not eligible for this grant. See the full list of ineligible businesses in Attachment A of the guidelines.
Non-employing businesses are not eligible to apply for this grant if anyone associated with the business or who derives income from it has received the Commonwealth COVID-19 disaster payment.
For employing businesses, your employees can receive Commonwealth COVID-19 disaster payments if you receive this grant.
Businesses that received the $1,500 small business fees and charges rebate can apply for this grant.
What you need
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a MyServiceNSW Account
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your proof of identity
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your valid ABN/ACN number
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your business banking details for payment
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a business activity statement (BAS)
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Australian income tax return or Notice of Assessment.
Evidence to support eligibility
When applying for this grant, you must:
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declare that you meet the eligibility criteria
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submit evidence of:
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your business' decline in turnover of 30% or more over a minimum 2-week period within the Greater Sydney lockdown
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an aggregated annual turnover between $30,000 and $75,000 for the year ended 30 June 2020.
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lodge other supporting documents, as required, to demonstrate you meet the eligibility criteria.
Where required, evidence must be in the form of a:
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letter from a qualified accountant, registered tax agent or registered BAS agent using the template provided, or
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business bank account statement, or
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business activity statement (BAS), or
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Australian income tax return or Notice of Assessment.
Businesses that cannot provide sufficient evidence are ineligible for the grant.
Alternative circumstances
If your micro-business does not meet all the eligibility criteria, you may still be able to apply for the grant. See 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 able to apply. These circumstances include:
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businesses not operating for the full year to 30 June 2020 (e.g., new businesses)
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businesses affected by drought, bush fires or other natural disasters
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business acquisition, disposal or business restructure that has impacted the business' turnover
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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 more than $30,000 and less than $75,000 is derived through the trust. The entity operating the business is eligible for the Grant, 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:
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accountant’s letter
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prior Business Activity Statements
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Australian tax returns (or Notice of Assessment)
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profit and loss statements prepared by a qualified accountant
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receipts and invoices from sales
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business bank account statements (separate from any personal accounts).
How to apply
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Check you meet the eligibility criteria.
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Have your documentation and evidence ready for uploading.
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Select the ‘Apply online’ button.Log in, or create your MyServiceNSW Account.
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Select and verify your identity documents.
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When your identity is verified, select ‘Continue’.
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Confirm your personal details.
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Enter your business details and answer the eligibility questions, then select ‘Next’.
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Provide information about your decline in turnover and upload your supporting documents, then select ‘Next’.
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Enter your bank details, then select ‘Next’.
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Review your application.
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Check the declaration boxes.
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Select ‘Submit’ to complete your application.
Note: You cannot save and resume your application once you’ve started.
More information
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Only one application can be submitted for a single ABN.
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Only one application is permitted where there are multiple businesses under a single ABN.
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Payments will be made in arrears with the first payment backdated to 26 June 2021.
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The 2021 COVID-19 micro-business grant cannot be used to cover expenses for which other government support is available, such as government fees and charges that would be covered by the small business fees and charges rebate.
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Successful applications may be subject to an audit.
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Two proof of identity documents are required.
Published: 27/07/2021 16h00
COVID-19 Micro Business Grants
- applications are not yet open
Fortnightly payment of $1,500 per fortnight for businesses with a turnover between $30,000 and $75,000.
Only for a micro business (small business or sole trader with annual turnover of more than $30,000 and under $75,000) impacted by the current Greater Sydney COVID-19 restrictions, you may be able to apply for a $1,500 payment per fortnight of restrictions from late July 2021.
In other words, not for businesses that can could qualify for the Covid-19 business grants which require a turnover of minimum $75,000 per annum.
Eligibility:
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A turnover between $30k and $75k
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A revenue decline of 30% or more
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Businesses that provide the primary income source for a person associated with the business
Applications open late July 2021.
Register your interest with Service NSW
You will need a Service NSW account for your business. If you do not already have one, you can apply here.
No further details available at present however you can register your interest in the scheme per the above link. As a result we cannot yet determine whether any of our clients may be eligible or not.
Published: 19/07/2021 13h20