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Federal and NSW Government COVID-19 financial support measures for businesses and workers
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Federal and NSW Government COVID-19 financial support measures for businesses and workers

The Federal and NSW Governments have provided more details on the financial support on offer to businesses and workers who have been impacted by the recent June/July 2021 lockdown measures.

Business support: Grants

The Grants are intended to provide cashflow support until the JobSaver measures (refer below) commence.

Businesses including sole traders are able to apply for one-off Grants based on the extent of their decline in turnover over a minimum two-week consecutive period from 26 June 2021 to 17 July 2021, when compared to the same period back in 2019.

Decline in turnover required Grant amount
30% or more $7,500
50% or more $10,500
70% or more $15,000

Requirements

  • There must be a demonstration that the business is physically located and primarily operating in NSW
  • The business must have an active ABN
  • There must be an aggregated turnover between $75,000 and $50 million (inclusive) for the year ended 30 June 2020
  • Total annual Australian wages of no more than $10 million at 1 July 2020
  • The business must maintain their employee headcount as of 13 July 2021
  • Has business costs which there is no government support available

Other

  • The Grants will not be taxable
  • In some circumstances, your business will require an Accountant’s Letter to show evidence that your business has had a sufficient decline in turnover. Your business will require an Accountant’s Letter in the following circumstances:
    • If the business is outside of the Highly Impacted Industries list the business will need to submit an Accountant’s Letter (a letter from a qualified accountant, registered tax agent or BAS agent) that confirms the business has experienced the requisite (30% or 50% or 70%) decline in turnover when applying for any Grant
    • If the business is within the Highly Impacted Industries list, then an Accountant’s Letter is required to confirm the business has had a 70% decline in turnover when applying for the $15,000 Grant
  • Applications for the Grant are open now and will be a one-off payment
  • Registration is required with Service NSW

Business support: JobSaver

Businesses including sole traders are able to apply for regular weekly JobSaver payments which are designed to inject regular cash flow into businesses to assist in keeping their workers employed.

JobSaver amount

  • Min $1,500 per week
  • Max $100,000 per week
  • In between, set at 40% of the weekly payroll

Requirements

  • An aggregated turnover between $75,000 and $250 million (inclusive) for the year ended 30 June 2020
  • Decline in turnover of at least 30% over a minimum two-week consecutive period from 26 June 2021 to 30 July 2021, when compared to the same period back in 2019
  • Business must maintain their NSW employee headcount as of 13 July 2021

Other

  • The JobSaver payments will not be taxable
  • Sole-traders will receive a min of $1,000
  • Application for the JobSaver payments are open now
  • The JobSaver are weekly payments while the lockdown continues
  • Registration is required with Services NSW

Action required

You can register your interest now at Service NSW and can apply from late July 2021.

Workers support: COVID-19 Disaster Payments (CDP)

Workers are able to apply for regular weekly CDP payments which are designed to support workers who have lost income due to lockdowns or other periods of restricted movement.

CDP amount

  • $600 per week if you lost at least 20 hours in a week (increased to $750 per week from 2 August)
  • $375 per week if you lost between 8 up to 20 hour in a week (increased to $450 per week from 2 August)

Additional requirements

  • Available to Australian resident or those with Australian working visas
  • Must be a minimum of 17 years old
  • You are not receiving Government income support payment such as, Austudy, living allowance, spouse pay, parental leave
  • You are not receiving Pandemic Leave Disaster payments or State pandemic payments for the same period
  • You live in, work from or have visited a Commonwealth declared COVID-19 hotspot
  • You have lost income because of a reduction in hours as noted above
  • You do not have access to appropriate paid leave entitlements (special COVID-19 leave). Paid leave entitlement does not include annual leave and long service leave

Other

  • The CDP will not be taxable
  • Sole-traders will receive a min of $1,000
  • Application for the JobSaver payments are open now
  • The JobSaver are weekly payments whilst the lockdowns continue
  • Registration is required with Service NSW

Action required

You can register your CDP claim at Services Australia.

What are the next steps?

If you are seeking further information or assistance, please contact your Pitcher Partners representative.

This content is general commentary only and does not constitute advice. Before making any decision or taking any action in relation to the content, you should consult your professional advisor. To the maximum extent permitted by law, neither Pitcher Partners or its affiliated entities, nor any of our employees will be liable for any loss, damage, liability or claim whatsoever suffered or incurred arising directly or indirectly out of the use or reliance on the material contained in this content. Pitcher Partners is an association of independent firms. Pitcher Partners is a member of the global network of Baker Tilly International Limited, the members of which are separate and independent legal entities. Liability limited by a scheme approved under professional standards legislation.

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