There has been a quick succession of improvements in the level of, and eligibility for, COVID support packages for lockdown affected individuals and businesses – funded Federally, for individuals and jointly by the affected State/Territory and the Federal Government. The serious and extended lockdown in NSW, then a shorter one in Victoria (the two biggest States economically and numerically) have been a catalyst for these improvements. Matching this welter of improvements, have been Tax Technical articles, which I’ve tried to post quickly, as the need is immediate (earliest NSW cut-off date is 13.9.21). I know I’ve published recently on the NSW package, but this summary of the NSW package of relief, by the Tax Institute is comprehensive and I thought worth getting out there. Also, there are links to Vic & SA benefits.

See below for further details.

[Tax Month – July 2021]

 


 

Summary of NSW COVID-19 support measures for businesses, sole traders and not-for-profit organisations (29.7.21)

The NSW Government COVID-19 support package includes:

Support available What is it? How much Eligibility
COVID-19 Business Grant A one-off payment to help businesses with cashflow support for the first 3 weeks of lockdown

Helps cover business costs incurred from 1 June 2021 to 17 July 2021

Program closes on 13 September 2021

$7,500 to $15,000 depending on the decline in turnover
  • A decline in revenue of 30% or more in a minimum 2-week period from 26 June 2021 to 17 July 2021
  • Aggregated annual turnover of $75,000 to $50 million (inclusive)
  • Annual Australian wages up to $10 million
  • Employing businesses: must maintain their 13 July 2021 employee headcount

Apply for the 2021 COVID-19 Business Grant here

JobSaver Fortnightly payments to help maintain employee headcount (as at 13 July 2021) and provide cashflow support to businesses

Helps cover business costs incurred from 18 July 2021

Program closes on 18 October 2021

  • Employing businesses: 40% of their NSW weekly payroll, with payments between $1,500 and $100,000 per week
  • Non-employing businesses: $1,000 per week
  • A decline in revenue of 30% or more in a minimum 2-week period from 26 June 2021 to 30 July 2021 (expected to be extended)
  • Aggregated annual turnover between $75,000 and $250 million (inclusive)
  • Employing businesses: must maintain their 13 July 2021 employee headcount
  • Non-employing businesses: Business must be the primary income source for a person associated with the business

Apply for JobSaver here

COVID-19 Micro-business Grant A fortnightly payment for businesses with a turnover between $30,000 and $75,000 (exclusive)

Covers business costs incurred from 1 June 2021

Program closes on 18 October 2021

$1,500 per fortnight
  • A decline of revenue 30% or more in a minimum 2-week period from 26 June 2021 to 30 July 2021 (expected to be extended)
  • Aggregated annual turnover between $30,000 and $75,000 (exclusive)
  • Employing businesses: must maintain their 13 July 2021 employee headcount
  • Non-employing businesses: Business must be the primary income source for a person associated with the business

Apply for the 2021 COVID-19 Micro-business Grant here

Small business fees and charges rebate A digital voucher that can be used to offset the costs of eligible NSW and local government fees and charges due and paid from 1 March 2021 to 30 June 2022

Program closes on 30 June 2022

Single $1,500 rebate, but can make multiple claims up to the $1,500 cap
  • Total Australian wages below NSW payroll tax threshold of $1.2 million
Payroll tax deferrals Businesses have the option to defer their annual reconciliation and certain payroll tax payments. Interest free repayment plans for up to 12 months are available Deferral of the 2020–21 annual reconciliation (due by 28 July 2021), as well as payroll tax payments due on 7 August and 7 September, until 7 October 2021 Any NSW business liable for payroll tax

More information can be found on the Revenue NSW website

Payroll tax reduction A 25% reduction to help reduce overheads for eligible businesses Eligible employers will receive a 25% reduction in their 2021–22 payroll tax liability if they have experienced a 30% decline in turnover
  • A decline in turnover of 30%
  • For NSW businesses with grouped Australian wages of no more than $10 million

More information can be found on the Revenue NSW website

Gaming Machine Tax deferrals Gaming machine tax deferral options for clubs and hotels
  • Clubs: deferral of the August quarter until 21 December 2021
  • Hotels: deferral of the June and September quarters until 21 January 2022
All NSW clubs or hotels liable for gaming machine tax

More information can be found on the Revenue NSW website

 

Toolkit (FAQs) to brief accounting and tax practitioners

The community is going through a challenging and uncertain time. On 28 July 2021, the NSW Government and the Commonwealth Government announced additional financial support for businesses and individuals affected by the current COVID-19 lockdowns and stay at home Public Health Orders.

Accountants and tax practitioners are on the frontline helping businesses and individuals understand the financial support available to them.

This toolkit from the NSW Government contains a downloadable frequently asked questions (FAQs) document to communicate about the new and existing financial support packages available.

Download your toolkit here.

NSW COVID-19 Disaster Support Payment boosted

On 28 July 2021, the Treasurer, the Hon Josh Frydenberg MP, announced that increased financial support for workers in NSW will be available from next week as part of the Government’s expanded national COVID-19 Disaster Payment.

Payments will continue to support workers in every State and Territory who lose hours due to a State Government lockdown or public health order. These payments are taxable.

Eligible workers will receive $750 per week if they lose 20 hours or more of work while those who lose between 8 and less than 20 hours, or a full day of work, will receive a payment of $450 per week. This increases the current amounts of $600 and $375 respectively.

Detailed information on the COVID-19 Disaster Payment can be found here.

Major JobSaver boost to expand COVID-19 support

With Greater Sydney set to remain in lockdown until at least 28 August 2021, the co-funded Commonwealth and NSW Government JobSaver payment program will be significantly boosted to give greater support to businesses impacted by the extended lockdown.

Under the expanded program, JobSaver payments will now be available to businesses, including not-for-profit organisations, with an aggregated annual turnover of between $75,000 and $250 million (inclusive), up from $50 million, which have experienced a decline in turnover of 30% or more.

The maximum fortnightly payment has also been substantially increased, with employing businesses that maintain their 13 July 2021 employee headcount now able to receive between $1,500 and $100,000 per week, up from $10,000.

The payment will continue to be calculated based on 40% of an eligible business’ NSW weekly payroll.

For non-employing businesses, such as sole traders, the fortnightly payment will remain set at a flat payment of $1,000 per week.

The expanded payment will:

  • provide more substantial support for businesses to cover unavoidable costs such as rent, insurance and maintenance, as well as employee costs during an extended lockdown;
  • will continue to be conditional on businesses maintaining their employee headcount as at 13 July 2021 (covering permanent and long-term casual employees) by not taking active steps to terminate their employment; and
  • take effect from 18 July 2021 — the start of the program. Businesses that have already submitted an application will not need to do anything; their payment will be automatically adjusted consistent with the expanded program.

More information can be found here and here.

SA small business cash grants continue to be rolled out

Thousands of small and medium-sized businesses to have begun receiving $3,000 and $1,000 emergency cash grants as part of the SA Government’s new $100 million Business Support Package.

More information can be found here.

Victorian support package

A new jointly funded Victorian Business Support Package from the Commonwealth and Victorian Governments will deliver an additional $400 million in support to businesses, with funding to be split 50/50 between the Commonwealth and Victorian Government.

The package includes a new $85 million Small Business COVID Hardship Fund and $156 million Business Continuity Fund, as well as delivering support for commercial tenants and landlords.

It will also build on Victorian Government support for licenced hospitality and alpine venues, with $70 million for the Licensed Hospitality Venue Fund 2021 and $9.8 million for Alpine Business Support.

More information can be found here.

[Tax Institute – Summary]

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