FINANCIAL SUPPORT FOR LOCKDOWN 2021

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The Prime Minister and NSW Premier yesterday announced a number of support measures being put in place in relation to the NSW lockdowns.
 
 There is still further detail to be provided. As soon as further detail becomes available, we will provide further updates.
 
 From the information available so far, it would appear that these packages will be administered via Service NSW, not the Australian Tax Office, which is a key difference from previous support packages.
 

Support for INDIVIDUALS

COVID-19 Disaster Payment
  
 From week four of a lockdown (next week) in a Commonwealth declared hotspot, the Disaster Payment will increase from $500 to $600 each week if a person has lost 20 hours or more of work a week or $325 to $375 each week if a person has lost between 8 and 20 hours of work.
 
 The Disaster Payment will also become a recurring payment for approved recipients for as long as the Commonwealth declared hotspot and lockdown restrictions remain in place. This will remove the need for recipients to re-claim for each seven day period of a lockdown. If a recipient’s hours of work increases, it will be their responsibility to notify this change.
 
 The Disaster Payment will also be further amended so that a person would be eligible for the payment, including where they are still working, provided they have lost more than 8 hours or a full day of work.
    
 If you or your employees believe you may be eligible for this payment you can register by calling 180 22 66 or online using the following link: https://www.servicesaustralia.gov.au/individuals/subjects/getting-help-during-coronavirus-covid-19/if-you-need-payment

 

 

Support for BUSINESS


 Small and Medium Business Support Payments
  
 From week four of the lockdown (next week), eligible entities will receive 40% of their NSW payroll payments, at a minimum of $1500 and a maximum of $10,000 per week. We understand that payroll will be calculated on the basis of an average weekly payroll over the 2021 financial year. Payments will be made fortnightly.
 
 Entities will be eligible if their turnover is 30% lower than an equivalent two week period in 2019.
 
 These payments will be available to employing entities in NSW, including not for profits, with an annual turnover between $75,000 and $50 million.
 
 Non-employing entities (e.g. sole-traders) will be eligible for $1,000 a week if they qualify.
 
 Importantly, in order to be eligible to receive the payment, entities will be required to maintain their full time, part time and long term casual staffing levels as of 13 July 2021.
 
 Businesses can register their interest from 14 July 2021 at www.service.nsw.gov.au.
 
 
 
 Small Business Grants Program
  
 The business grants program announced two weeks ago has been expanded, with grants between $7,500 and $15,000 available to eligible businesses with annual wages up to $10 million. This means that eligible businesses can claim grants to cover the first three weeks of restrictions.
 
 The grant can be used for business expenses such as rent, utilities & wages, for which no other government support is available.
 
 Three different grant amounts will be available based on the decline in turnover experienced during the restrictions:

·         $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.

Full eligibility criteria will be available soon.
 A “Micro Business Grant” has also been added for businesses with a turnover of more than $30,000 and under $75,000. A grant of up to $1,500 may be available from late July.
 
 Importantly, you cannot claim these grants yet, and full eligibility has not yet been released. You can currently register your interest to stay notified of developments using the following link:
 
 https://www.service.nsw.gov.au/covid-19-business-support-2021
 

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