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COVID-19 Business Grants

- 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 Business Grants

- Rules and Application Process

 

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

Highlghts, bolding and underlines are ours.

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

This is a one-off payment to help businesses with cashflow support for the first 3 weeks of lockdown.

No amendments or changes announced yet.

 

They are still wanting applicants to compare revenue periods 26 June 2021 to 17 July 2021 with 26 June 2019 to 17 July 2019 as the base case. 

 

So as it currently stands (as was the case when the program started), those businesses that were not trading in that period or had just commenced trading are still at a disadvantage as they will need to apply "alternative circumstances" which automatically requires more begging and pleading to get the grant. 

 

The base case dates was the original lockdown period plus one extension.  The expectation is that this comparative period should be extended as the lockdown is extended.  However, please note that there is no guarantee that these types of changes to the scheme will occur and that this statement is currently speculation. 

 

As the applications are open until 13 September 2021, there  is no risk of missing out on this particular grant should you choose to delay starting the application to see if any of the date and eligibility rules change. 

 

The one thing that I am relatively certain of is that once you apply and then if the rules change which would have resulted in the business getting a more favourable grant outcome (ie 30% vs 50% vs 70%), that you will not be able to amend your application as a result.  Again, I have no facts to support this statement, I am basing this purely on experience of past programs. 

 

The other main rule that has definitely not changed is that once you start the application you have to complete it in one sitting.  You cannot save or delete and start again.

 

 

 

Published: 27/07/2021 15h20

 

 

 

COVID-19 Business Grants

- Rules and Application Process

 

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

Highlghts, bolding and underlines are ours.

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

This is a one-off payment to help businesses with cashflow support for the first 3 weeks of lockdown.

Main requirements for eligibility:

To be eligible for the grant, you must:

  • have an active Australian Business Number (ABN)

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

  • have had total annual Australian wages of $10 million or less as at 1 July 2020

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

  • have business costs for which there is no other government support available

  • maintain your employee headcount as at 13 July 2021

  • See the guidelines for definitions.

 

Three different grant amounts will be available depending on the decline in turnover experienced over a minimum 2-week period from 26 June 2021 to 17 July 2021, compared to the same period in 2019:

  • $7,500 for a decline of 30% or more

  • $10,500 for a decline of 50% or more

  • $15,000 for a decline of 70% or more.

Applications open 19 July and close at 11:59pm on 13 September 2021.

You will need a Service NSW account for your business.  If you do not already have one, you can apply here.

This application has to be done online and once started has to be completed fully and submitted.  Based on previous applications of a similar type, you will not be able to save your progress and return at a later date tp continue with it.  Again, based on previous applications of a similar nature, you will also not be able to stop your application once started and try a new one later.

As a result it is critical that you fully understand what information you need to have ready before you start the application

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

  • 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.

 

If your business is not on the highly impacted industries list, you must:

  • 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.

 

To show evidence of this decline in turnover, you'll need to submit a letter from a qualified accountant, registered tax agent or registered BAS agent, using the template provided.

Note:

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.

To further help avoid delays in completing your application:

Apply for the 2021 COVID-19 business grant (detailed webpage)

Please note, this is a long webpage with a lot of detail.  Too detailed to summarise for this article.  Highly recommended that you take the time to read through this as there are many check of items.

Alternative circumstances if you are not able to meet the main eligibility criteria:

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

 

There are a number of alternative circumstances, however, we believe that the below are probably most relevant for our clients.

Businesses that cannot demonstrate the minimum $75,000 aggregated annual turnover or the minimum decline in turnover should contact Service NSW (read - you will need to phone them) 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

  • their turnover in June/July 2019 was not representative of their usual or average turnover (e.g. due to drought or bushfires) which is usually $75,000 per annum or more, and they can demonstrate they have been significantly impacted by the Public Health Orders.

Ineligible businesses

There are a number of ineligible businesses, however, below are three examples.

  • the entity primarily earns passive income (rents, interest, or dividends)

  • the entity is a company in liquidation or provisional liquidation

  • the entity is an individual who has entered bankruptcy

Published: 19/07/2021 13h45

 

 

NSW Government – 2021 Covid-19 Support Package details

 update 13/072021

 

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

Highlghts, bolding and underlines are ours.

As an initial comment, please note that applications are still not open for this support:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Applications for grants must be made through Service NSW, with the application process due to go live later in July 2021.

Please also note that as per usual there is a kicker which will make a number of businesses ineligible.  Refer below.

Summary of package:

Small businesses and not-for-profits will be eligible for the 2021 Small Business COVID-19 Support Grant if they:

  • have fewer than 20 FTE (including non-employing businesses) as at 1 June 2021

  • have an Australian Business Number (ABN) registered in NSW or can demonstrate they are physically located and primarily operating in NSW as at 1 June 2021. Only one grant is available for a single ABN

  • have total Australian annual wages below the NSW Government 2020-2021 payroll tax threshold of $1,200,000 as at 1 July 2020

  • had an annual turnover of more than $75,000 for the year ended 30 June 2020

  • have not applied for, or received, the Hospitality and Tourism COVID-19 Support Grant

  • have business costs for which there is no other government support available.

 

Tourism and hospitality businesses will be eligible for a Hospitality and Tourism COVID-19 Support Grant if they:

  • have an ANZSIC code that is classified as a tourism or hospitality business

  • have an Australian Business Number (ABN) registered in NSW or can demonstrate they are physically located and primarily operating in NSW as at 1 June 2021. Only one grant is available for a single ABN

  • have total annual Australian wages below $10 million as at 1 July 2020

  • had an annual turnover of more than $75,000 for the year ended 30 June 2020

  • have not applied for, or received, a 2021 Small Business COVID-19 Support Grant

  • have business costs for which there is no other government support available.

 

Sole traders and not-for-profits can apply if they have turnover over $75K and meet all other eligibility criteria. [EB&A comment, assume that the turnover requirement also has a 30 June 2020 requirement].

EB&A comment - here is the kicker:

To apply, businesses will need to compare their turnover over a minimum two-week period after lockdown commenced, to a minimum two-week period in June and/or July 2019.

Businesses that were not operating in June/July 2019 may still be able to apply for the grants.

These businesses should contact Service NSW to discuss their application.

Grant funds can be used for business expenses for which no other government support is available, for example:

  • meeting business costs, including utilities, wages and rent

  • financial, legal or other advice to support business continuity planning

  • marketing and communications activities to develop the business

  • the cost of perishable goods that can no longer be used

  • other activities to support the operation of the business

Published: 13/07/2021 09h50

New COVID-19 support package announced by NSW Government

 

EB&A Summary

Businesses will be able to apply for the grants through Service NSW from later in July 2021 and will need to show a decline in turnover across a minimum two-week period after the commencement of major restrictions on June 26, 2021.

 

The package includes: 

  1. grants of between $5000 and $10,000 for small businesses; 

  2. payroll tax deferrals for all employers; 

  3. an extension of the Dine & Discover program to 31 August 2021; and 

  4. the ability for people to use Dine & Discover vouchers for takeaway delivered directly to their home by the venue itself.

 

Three different grant amounts will be available for small businesses depending on the decline in turnover experienced during the restrictions: 

  1. $10,000 for a 70 per cent decline in turnover, 

  2. $7000 for a 50 per cent decline in turnover and 

  3. $5000 for a 30 per cent decline in turnover.

 

The grants will be divided into two streams:

1. Small Business COVID-19 Support Grant. Available to businesses and sole traders with a turnover of more than $75,000 per annum but

below the NSW Government 2020/2021 payroll tax threshold of $1,200,000 as at 1 July 2020.

(Full criteria will be available in coming days on the Service NSW website).

2. Hospitality and Tourism COVID-19 Support Grant. Available to tourism or hospitality businesses that have a turnover of more than $75,000 (per annum) and an annual Australian wages bill of below $10 million, as at 1 July 2020.
(Full criteria will be available in coming days on the Service NSW website).

 

Dine & Discover vouchers will be able to be used: 

  1. for takeaway from eligible and registered Dine businesses during the restriction period;

  2. delivery direct to the home by the restaurant or café is recommended;

  3. food may be picked up from venue but check in with QR code is required.

 

Dine & Discover vouchers cannot be redeemed for takeaway using third party delivery platforms.

 

A further one-month extension of Dine & Discover vouchers until 31 August 2021.


https://www.nsw.gov.au/media-releases/major-new-covid-19-support-package-to-help-tens-of-thousands-of-businesses-across

 

Major new COVID-19 support package to help tens of thousands of businesses across NSW

 

Published: 29 Jun 2021  Released by: The Premier, Deputy Premier, Treasurer

 

Focus

 

The NSW Government today announced a major new grants package and changes to the Dine & Discover program to help tens of thousands of small businesses and people across NSW impacted by the current COVID-19 restrictions.


The package includes grants of between $5000 and $10,000 for small businesses, payroll tax deferrals for all employers, 
an extension of the Dine & Discover program to 31 August and the ability for people to use Dine & Discover vouchers for takeaway delivered directly to their home by the venue itself.

NSW Premier Gladys Berejiklian said the centrepiece of the package was the small business support grants which will help businesses by alleviating cashflow constraints while trading is restricted. This can be used for business expenses such as rent, utilities and wages, for which no other government support is available.

 

“We always said we will do whatever it takes to support businesses and keep people in jobs during the pandemic and that is exactly what we are doing,” Ms Berejiklian said.

 

“The current restrictions are in place to protect people and keep the community safe, unfortunately businesses continue to incur costs such as rent, power and lost produce, and this will go some way to lessening that financial pain.”

 

Three different grant amounts will be available for small businesses depending on the decline in turnover experienced during the restrictions – $10,000 for a 70 per cent decline, $7000 for a 50 per cent decline and $5000 for a 30 per cent decline.

Deputy Premier John Barilaro said the new grants would be available across NSW.

 

“This latest outbreak has coincided with school holidays when a lot of regional areas were counting on more visitors to help boost local economies,” Mr Barilaro said.

 

“These grants will help many get through the winter, and just like after the bushfires, the floods and the first wave of COVID-19, the regions will lead NSW out the other side.” 

 

NSW Treasurer Dominic Perrottet said the small business grants would be available for sole traders and non-for-profit organisations, with expanded criteria to assist most hospitality and tourism operators hit hard by the restrictions during school holidays.

 

“The NSW economy rebounded strongly from the challenges of 2020 and we’re taking action to ensure we keep that going. We are deploying our fiscal firepower when it matters, by helping small businesses stay in business and keep people in jobs,” Mr Perrottet said.

 

“Once again we are delivering timely and targeted support to keep businesses in business and people in jobs as we work together to overcome this latest challenge.”

 

Businesses will be able to apply for the grants through Service NSW from later in July and will need to show a decline in turnover across a minimum two-week period after the commencement of major restrictions on June 26.

 

The grants will be divided into two streams:

 

1. Small Business COVID-19 Support Grant. Available to businesses and sole traders with a turnover of more than $75,000 per annum but below the NSW Government 2020 21 payroll tax threshold of $1,200,000 as at 1 July 2020.
 
These businesses must have fewer than 20 full time equivalent employees and an Australian Business Number (ABN) registered in New South Wales or be able to demonstrate they are physically located and primarily operating in New South Wales. 

 

(Full criteria will be available in coming days on the Service NSW website).

 

2. Hospitality and Tourism COVID-19 Support Grant. Available to tourism or hospitality businesses that have a turnover of more than $75,000 (per annum) and an annual Australian wages bill of below $10 million, as at 1 July 2020.

 

These business must have an Australian Business Number (ABN) registered in New South Wales or be able to demonstrate they are physically located and primarily operating in New South Wales. (Full criteria will be available in coming days on the Service NSW website).

 

Other key elements of the package announced today include:

 

Dine & Discover vouchers will be able to be used for takeaway from eligible and registered Dine businesses during the restriction period;
delivery direct to the home by the restaurant or café is recommended; food may be picked up from venue but check in with QR code is required. Dine & Discover vouchers cannot be redeemed for takeaway using third party delivery platforms. A further one-month extension of Dine & Discover vouchers until 31 August 2021 to allow people more time to use them.


More than $11 million for increased support for people at risk of homelessness plus assistance to vulnerable temporary visa holders, asylum seekers and refugees.

 

An optional deferral of payroll tax payments due in July 2021 and the deferral of hotel June quarter gaming machine tax, with the Chief Commissioner of State Revenue able to provide for appropriate repayment arrangements on a case by case basis.
More information on the small business support grants and changes to the Dine & Discover program will be available shortly on the Service NSW website.
 

Published: 30/06/2021 19h10

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