Fresh COVID-19 cash flow support for NSW small businesses
With millions of NSW residents under stay-at-home orders and the state holding their collective breaths, it’s buoying to see fresh support offered to small businesses affected by the lockdown.
There were two primary business streams of financial grant support announced on Tuesday by NSW Premier Gladys Berejiklian and Treasurer Dominic Perrottet. The first stream is for small businesses and the second is for hospitality and tourism.
Read on to find out how your NSW small business could be financially supported through the latest lockdown measures sweeping the state, and what eligibility criteria you’ll need to satisfy.
Small businesses targeted in NSW
In a move which takes the spotlight off larger businesses (who are better poised to survive bouts of cash flow blockages), the focus is squarely on the small business community.
To help ensure small business impacts are kept at a minimum, the following packages – with applicable criteria – will be made available across the state:
Small business grant package details
- These grants will apply to small businesses, sole traders, and not-for-profits.
- Grants will be between $5,000 and $10,000 depending on the downturn of revenue experienced by a particular business.
- $10,000 will be granted to small businesses who’ve experienced a 70% decline in revenue.
- $7,000 will be granted to small businesses who’ve experienced a 50% decline in revenue.
- $5,000 will be granted to small businesses who’ve experienced a 30% decline in revenue.
- This revenue loss must be for a period of at least two weeks starting from 26 June.
- Payments will begin from 19 July.
- You must employ less than 20 people.
- Your business must have an annual turnover of more than $75,000 and less than $1.2 million.
- Your business must operate primarily in NSW or have your ABN registered in NSW.
- Proof of revenue loss as compared to a similar period in 2019 must be substantiated, with a statement from your accountant being the accepted mechanism.
Tourism and hospitality grants
In addition to small business grants, there’s a separate set of measures and incentives on the table, offered specifically to those in the tourism and hospitality sectors with a slight difference in the eligibility criteria.
Tourism and hospitality grant details
- The grant amounts will be the same as small businesses – between $5,000 and $10,000 depending on revenue loss, as above.
- Businesses in these industries will need to have revenue of over $75,000 and under $10 million.
- You must primarily operate your tourism or hospitality business within NSW.
- Proof of revenue loss as compared to a similar period in 2019 must be substantiated, with a statement from your accountant the accepted mechanism.
NSW Treasurer Dominic Perrottet made the following announcement on 29 June around obtaining a letter from your accountant:
“You will need to provide evidence through an accountant in relation to that decline in turnover, but this will provide rapid relief for businesses to recover during this difficult time.”
Further business incentives
In addition to the small business grants, there have also been several other measures introduced to assist in alleviating business pain during the NSW lockdown.
- Payroll tax will be deferred for all affected businesses – regardless of size.
- Dine and Discover voucher validity will be extended until the end of August. You may also now use your Dine and Discover vouchers for takeaway services, with delivery recommended and pickup only when you utilise the QR code check-in system.
- Hotels and clubs will receive additional assistance by being offered an optional deferral of gaming machine taxes.
Federal support for workers through the COVID-19 Disaster Payment
From the federal government, there are further payments available for workers in declared hotspots (including Sydney) who are unable to work due to rules and restrictions.
Under the COVID-19 Disaster Payment scheme, workers from any locked down COVID-19 hotspots who have been unable to attend work, or whose employers cannot operate, may be eligible for a one-off cash payment for each period of lockdown.
- If a worker has lost less than 20 hours of work per week, they can receive $325.
- If a worker has list more than 20 hours of work per week, they can receive the full $500.
Accountant statements as proof of revenue loss
To provide proof of revenue loss, you’ll need to book a session with your accountant or bookkeeper to get evidence of your losses in the form of a statement. After being provided with a statement or letter from your accounting or bookkeeper, you may then be considered eligible for grant payments.
If you require the services of a bookkeeper or accountant near you, please use our free advisor search tool.