The New South Wales State Government has announced a new support package to assist small businesses with the economic impact caused by the recent two week lockdown.
The package includes grants of between $5,000 and $10,000 for small businesses, payroll tax deferrals for all employers, and an extension of the Dine and Discover program to the end of August.
Clubs and hotels will also be given a reprieve with optional deferral of gaming machine taxes.
The funding process for the new support packages have been streamlined following a number of backlog issues associated with the northern beaches covid-19 grants which were announced to support business loss for the peninsula lockdown in December 2020.
The amount of funding that a business, which includes sole traders and not-for-profits, receives will depend on how much was lost due to the stay-at-home orders.
The NSW State Government has outlined these have been divided into two streams: small business and hospitality and tourism.
The grants will be available to small businesses, sole traders and not-for-profits that have:
- A turnover of more than $75,000 but below the payroll tax threshold of $1,200,000
- Fewer than 20 full-time employees
- An accountant statement that confirms a loss in revenue for the time period compared to the same time in July 2019
- For the tourism and hospitality sector, eligible businesses will need to have:
- A turnover of more than $75,000 and an annual wages bill of below $10 million
- An accountant statement that confirms a loss in revenue for the time period compared to the same time in July 2019
For businesses who are deemed eligible there will be a $10,000 grant available for businesses that have lost 70 percent of their revenue, a $7,000 grant for a 50 per cent loss, and $5,000 for a 30 per cent loss. Payroll tax deferrals will also be available to all businesses.
The hotels and clubs sector have also been given some tax relief, with the option to defer their June quarter gaming machine tax payments. These tax payments are usually due in July.
The support measures introduced by the NSW State Government will be offered in addition to the Commonwealth’s Covidf-19 Disaster Payment. According to Prime Minister Scott Morrison this payment will be available for affected workers from 1st July 2021.
This means that workers who were unable to work because of lockdown restrictions will be eligible for $500 a week if they normally work over 20 hours each week, and those who work under 20 hours will receive $325 each week until restrictions are eased.
Eligible workers will include Australian citizens, residents and visa holders who are permitted to work in Australia and are aged 17 and older.
NSW State Government Extends “Dine and Discover”
Dominic Perrottet the New South Wales Treasurer also announced that the Dine and Discover vouchers would be valid until the end of August 2021, an extension of one month from the previous deadline of 31st July 2021.
On top of being used for dine in meals, this much needed cash injection for hospitality businesses can also be used for takeaway as long as customers used the QR codes to check into the businesses when picking up food.
More detailed criteria about the Dine and Discover extension and whether businesses would be eligible for the relief will be available in coming days.