Article Source: xero.com
This article was last updated on Monday 19 July 2021. As the COVID-19 situation continues to develop, you can find the information you need on government support at Service NSW.
In some very welcome news for business owners, the New South Wales and Commonwealth governments have announced a new support package for businesses impacted by the current Greater Sydney lockdown.
Faced with the uncertainty of shifting restrictions, this is an incredibly challenging time for small business owners. And these latest measures intend to ease some of the financial and emotional pressures that can snowball while lockdowns are in place. To help you work out what to do next, and when you’ll start to see payments, we’ve unpacked the latest information below.
What kind of support is available?
Small businesses could receive one of three payments depending on their size and operations.
- The first is a one-off grant payment of between $1,500 and $15,000. The amount you could be paid comes down to demonstrating a decline in turnover of at least 30 percent across a minimum fortnightly period of any interval between 26 June to 26 July. This must be compared to the same period in 2019.For businesses on the NSW border with Victoria impacted by stay-at-home restrictions that began on 27 May, a different time frame could apply. Any fortnight between 27 May to 26 July may be used to show a decline in turnover compared to the same minimum period in 2019.
According to the NSW Government, the payment amount you could receive is outlined as:
- $15,000 for a 70 percent or more decline in turnover
- $10,500 for a 50 to 69 percent decline in turnover
- $7,500 for a 30 to 49 percent decline in turnover.
- Next, is the JobSaver support payment. Eligible small businesses will receive 40 percent of their payroll between $1,500 to $10,000 per week to cover wage expenses.
It’s important to remember that these support payments are designed to cover business expenses like rent, utilities, and wages while restrictions are in place. This means that business owners who receive a grant will be required to keep full-time, part-time and long-term casual staff on their books.
And finally, for those without employees – including micro-businesses and sole traders with an annual turnover between $35,000 and $75,000 – you could qualify for a COVID-19 micro business grant of $1,500 per fortnight. Applications for this payment, and JobSaver support will open later in July, so be sure to register your interest with Service NSW if you intend to apply.
Where should I start?
The first step is to head to the Service NSW website to read the full eligibility criteria. Don’t forget to check with the Australian Business Register to ensure your business and contact details are correct. And do the same with your MyServiceNSW Account (or create one if you haven’t already).
The next step is to get in touch with your accountant or BAS agent to let them know you intend to claim. To apply for a COVID-19 business grant, you’ll need them to provide a letter outlining your decline in turnover, proving that your business qualifies. And the more notice you can provide, the better prepared they’ll be to help you.
Together with your advisor, you’ll be able to draw on your 2019 business records using your Xero account to calculate a decline in turnover percentage. It’s also worth noting that school holiday dates (which were different in 2019 and 2021) will likely impact this data, particularly for small businesses affected by seasonal trading periods.
Once you have your paperwork in order (including your advisor’s letter and proof of identity documents) you’ll be able to begin your application through your MyServiceNSW account. For a step-by-step guide on how to apply, read the Service NSW guidelines.
When will the grants be paid?
From 23 July, the Commonwealth and NSW governments will start making payments to eligible businesses. Your best chance of receiving the support sooner rather than later is to submit your application on 19 July.
Is there any other help available?
Payroll tax waivers of 25 percent will be available for businesses with wages between $1.2 to $10 million that have experienced a decline in turnover of at least 30 percent. Additionally, COVID-19 business grants will be tax-exempt.
As well as financial assistance, the NSW and Commonwealth governments are committing over $17 million to a state-wide mental health support package. This will provide a boost to services like Lifeline and Sonder – both of which offer free, round-the-clock counselling.
For wellbeing support that’s tailored to small business owners and employers, there’s also Beyond Blue’s NewAccess service for free mental health coaching and the Ahead for Business wellbeing plan for managing stress.
Be sure to keep an eye on the NSW government website for more information. In the meantime, head to Xero’s Business continuity hub for more resources and guidance on how to support your business during this challenging period.