AusFinance Gazette

NSW COVID-19 support package

The government has committed over $5 billion as part of a business and employee support program in response to the latest lockdown in NSW and lenders have reinstated deferral programs.

NSW COVID RELIEF

The following is a summary of the support packages available for individuals and businesses impacted by the lockdown.

Support for employees impacted by the lockdown

COVID-19 Disaster Payment

The Commonwealth will enhance and expand the support available to NSW and other states that experience an extended lockdown.

Specifically, the Commonwealth will:

  • From week four of a lockdown because of a Commonwealth declared hotspot, the COVID-19 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.
  • Make the COVID-19 Disaster Payment 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.
  • Amend the COVID-19 Disaster Payment 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.
  • From 18 July 2021 the COVID-19 Disaster Payment will be available to those outside Commonwealth declared hotspots in NSW that meet the criteria for the payment.

    The NSW Government will fund any payments outside a Commonwealth declared hotspot, with the Commonwealth continuing to fund payments to recipients in a Commonwealth declared hotspot.

    You can claim the COVID-19 Disaster Payment here

    Support for businesses, sole traders and small not-for-profits

    COVID-19 Business Grants

    A one-off payment to help businesses with cashflow support for the first 3 weeks of lockdown.

    The amounts provided are:

  • $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
  • Eligibility

  • Annual turnover above $75,000 as at year ended June 2020
  • Payroll up to $10 million
  • Less than 20 full time employees
  • You must maintain your employee headcount
  • Applications are now open here. You will need to provide details of a qualified accountant, registered tax agent or registered BAS agent.

    The relevant test period for the decline in turnover is a minimum 2 week period after the lockdown commenced (26 June 2021) as compared to same length period in June and/or July 2019.

    JobSaver

    Fortnightly payments to help maintain employee headcount (as at 13 July) and provide cashflow 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.
  • Non-employing business: $1,000 per week
  • Eligibility

  • A revenue decline of 30% or more.
  • Turnover between $75,000 and $50 million.
  • Applications open late July. Register to get notified when it goes live here.

    The relevant test period for the decline in turnover is a minimum 2 week period after the lockdown commenced (26 June 2021) as compared to same length period in June and/or July 2019.

    Micro business grant

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

    How much

  • $1,500 per fortnight
  • Eligibility

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  • A turnover between $30,000 and $75,000.
  • A revenue decline of 30% or more.
  • Businesses that provide the primary income source for a person associated with the business.
  • Applications open late July. Register to get notified when it goes live here.

    The relevant test period for the decline in turnover is a minimum 2 week period after the lockdown commenced (26 June 2021) as compared to same length period in June and/or July 2019.

    Payroll tax waivers

    Businesses with Australian wages of between $1.2 million and $10 million that have experienced a 30% decline in turnover may be entitled to NSW payroll tax deferral and potentially waivers of 25% for the first quarter of this financial year as well as interest free repayment plans. Details to be announced shortly. More information can be found here.

    NSW Landlords & Tenants

    A capped grant of up to $1,500 is available for residential landlords who are not liable to pay land tax who reduce rent for tenants or land tax reductions depending on their circumstances. Likewise residential tenants will have greater protection with a targeted eviction moratorium.

    Commercial and retail landlords will need to attempt mediation before recovering a security bond, or locking out or evicting a tenant impacted by the Public Health Order.

    Commercial, retail and residential landlords liable for land tax will be eligible for a land tax concession where they reduce the rent of their tenant.

    Further details to be announced shortly and other state & territory landlords should check their relevant state Revenue Office website for similar announcements. More information can be found here.

    NSW Land Tax

    Commercial, retail and residential landlords liable for land tax will be eligible for a land tax concession where they reduce the rent of their tenant. The relief may be equal to the value of rent reductions provided by landlords to financially distressed tenants and up to 100 per cent of the 2021 land tax year liability. More information can be found here.

    Loan Deferrals

    Home loan support

    • Range of support measures, including deferrals on a month-by-month basis

    • Available to both individual and business customers

    Business banking repayment deferrals

    • Up to three-month repayment deferrals, with loan terms extended accordingly

    • Offered to all small-business customers (business lending less than $3 million and a turnover of less than $5 million), which includes up to 98 per cent of small businesses

    • Only for loans in good standing (i.e. repayments up to date or engaged in a payment program with their bank)

    Everyday banking support

    • Refunds of merchant terminal fees for up to three months

    • Waiving of fees and notice periods on cash deposit and farm management deposit accounts for up to three months

    Please contact your lender for more information.

    NSW COVID RELIEF

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