With a sense of déjà vu for NSW-based organisations, again this winter we will be traversing disruptions to our organisations and personal lives. Hang in there friends! On a positive note though, Governments are stepping in once more to provide financial support.
Yesterday we saw the Federal and NSW Governments joining forces to offer support to NSW businesses affected by the current Covid 19 outbreak. We will be helping our ongoing clients to assess these support measures.
As it was through periods last year, this is Government policy on the run. Some of the finer details are yet to emerge, so we will endeavour to provide relevant information as it arises. However, we have summarised below key elements, impacts and next steps for our clients.
- These payments will be available to non-employing and employing entities in NSW, including non-profits, with an annual turnover between $75,000 and $50 million
- Entities will be eligible if they can demonstrate that their turnover is 30% lower than an equivalent 2-week period in 2019 (we await confirmation on which 2-week period but if it follows previous indicators this could be a 2-week period after the commencement of major restrictions on 26 June)
- Purpose will support our clients in making these turnover determinations
- As a prerequisite to receive the payment, entities will be required to maintain their full time, part time and long-term casual staffing level as of 13 July 2021
- Eligible entities will receive 40% of their NSW payroll payments, at a minimum of $1,500 and a maximum of $10,000 per week
- The program will be implemented and administered by Service NSW. Expressions of interest open today via the Service NSW website.
- The business support payments will cease when current lockdown restrictions are eased or when the Commonwealth hotspot declaration is removed
- For more information, view the Federal Government’s press release here
2. NSW Govt small business grants
- The NSW Treasurer has announced an expansion of the original scheme, with applications available from 19 July via Service NSW
- Access will be expanded for businesses with payrolls of $75K up to $10 million, to cover the first three-weeks of restrictions
- The grant can be used for business expenses such as rent, utilities and wages, for which no other Government support is available
- Three different grant amounts will be available depending 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 via Service NSW
- A new grant program has also been introduced for smaller micro businesses with turnover between $30,000 and $75,000. The businesses will be eligible for a $1,500 payment per fortnight of restrictions.
- The NSW Govt also announced new spending programs for the arts, homelessness and mental health sectors. For more information, view the NSW Govt press release here.