Apply Today! Criteria & Definitions Update NSW Covid-19 Business Financial Support

The NSW Government is from today, accepting applications for the various grants recently announced for businesses impacted by the recent COVID-19 restrictions and stay-at-home orders. Here is an update on the eligibility criteria together with some key definitions.

2021 COVID-19 Business Grant
This grant is a one-off payment to help businesses, sole traders or not-for-profit organisations impacted by the current Greater Sydney COVID-19 restrictions.

Grants between $7,500 and $15,000 are available to eligible businesses depending on the decline in turnover experienced during the restrictions.

Please note that the 2021 COVID-19 Business Grant ('the Grant') will provide cash flow support until the JobSaver scheme commences (not yet open for application and guidelines not yet released), to help cover business expenses for which no other government support is available. The intention of the Grant is to help businesses survive the lockdown so they can continue to support employment and the economy after restrictions are lifted.

The 2021 COVID-19 business grant provides cash flow support for businesses that experienced reduced demand or had to close due to the public health orders. Eligible applicants across NSW can use the grant for business costs incurred from 1 June 2021, including:

• utilities, wages and rent;
• financial, legal or other advice to support business continuity planning;
• Marketing and communications activities to develop business;
• the cost of perishable goods that can no longer be used;
• other activities to support the operation of the business.

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.

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.

Businesses and not-for-profit organisations on the NSW border with Victoria impacted by the stay-at-home orders that began on 27 May 2021 may use a different comparison period to demonstrate a decline in turnover. For each of the 3 grant amounts, these businesses must demonstrate a decline in turnover over a minimum 2-week period from 27 May 2021 to 26 July 2021.

What You Need

• a MyServiceNSW Account;
• your proof of identity;
• your valid ABN/ACN number;
• your business banking details for payment;
• Australian income tax return or Notice of Assessment;
• qualified accountant, registered tax agent or registered BAS agent details.

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.

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.

Job Saver

This is a fortnightly payment to help maintain employee headcount (as at 13 July) and provide cash flow support to businesses.

How much?

• Employing businesses: 40% of weekly payroll, with a minimum payment of $1,500 per week and a maximum payment of $10,000 per week; and
• Non-employing business: $1,000 per week.

Eligibility

• A revenue decline of 30% or more.
• Turnover between $75,000 and $50 million;

COVID-19 Micro Business Grant

A fortnightly payment for businesses with a turnover between $30,000 and $75,000.

How much

• $1,500 per fortnight

Eligibility

• A turnover between $30,000 and $75,000;
• A revenue decline of 30% or more; and
• Businesses that provide the primary income source for a person associated with the business.

Definitions

Aggregated annual turnover: the Australian Taxation Office income assessment concept will be applied when assessing whether an applicant had national aggregated annual turnover of between $75,000 and $50 million (inclusive);

Decline in turnover: the Australian Taxation Office Goods and Services Tax (GST) concept will be applied when assessing whether an applicant experienced a 30% or more decline in national turnover;

Employee headcount means the number of persons who are employed in New South Wales and who are permanent (full-time or part-time), or casual staff that have been employed by the business for more than 12 months;

Greater Sydney means (a) the Greater Sydney Region within the meaning of the Greater Sydney Commission Act 2015, and (b) the local government areas of the Central Coast, the City of Shellharbour and the City of Wollongong;

Highly impacted industries means the industries in the list in Attachment A of the guidelines;

An independent practitioner is not an employee or director of the applicant, an associated entity of the applicant, or a director or employee of an associated entity of the applicant;

Maintain their employee headcount means maintenance of the employer-employee relationship consistent with employment law. Employers will, however, remain eligible if employees voluntarily resign;

Non-employing business means a business owner who does not have employees. This may include a range of entity types, such as non-employing sole traders or any other businesses without employees;

Not-for-profit organisation means an incorporated charity or non-profit entity which is registered with the Australian Charities and Not-for-Profits Commission (ACNC) or an equivalent NSW regulatory body;

Qualified accountant, registered tax agent or registered BAS agent means an Independent Practitioner that is a:
• qualified accountant as defined in the Corporations Act 2001;
• registered tax agent as defined under the Tax Agent Services Act 2009; or
• registered BAS agent as defined under the Tax Services Act 2009;

Southern Border business is a business that has an ABN registered in, or is physically located and primarily operating in, one of the following local government areas:
• Albury
• Balranald
• Berrigan
• Bega Valley
• Edward River
• Federation
• Greater Hume Shire
• Hay
• Murray River
• Murrumbidgee
• Snowy Monaro
• Snowy Valleys
• Wentworth.

Don't Delay

To help avoid delays in completing your application for NSW Government support:

• ensure your business and contact details are up-to-date with the Australian Business Register (ABR);
• ensure your personal, contact and business details are up-to-date in your MyServiceNSW Account and your business profile
• if you don't have one, create a MyServiceNSW Account and business profile.

Tribel is here to help

Please be assured that Tribel Accountants and Business Advisors is committed to keep its clients and others who require assistance informed of any developments. In addition, we will be available to assess you and/or your business in determining eligibility for any government grants and support.

In the meantime, if you have any questions, please feel free to contact the Tribel team.

The material and contents provided in this publication are informative in nature only. It is not intended to be advice and you should not act specifically on the basis of this information alone. If expert assistance is required, professional advice should be obtained.