Compare the Grants

The NSW Government is offering 3 types of financial support to businesses:

Generally, the support your business will be eligible for will be based on:

  • whether your business turnover is under or over $75,000
  • the documentation you can provide to support your claim
  • whether you are a sole trader or non-employing business who is already receiving the Australian Government’s COVID-19 disaster payment

The 2021 COVID-19 micro-business grant provides cash flow support for micro-businesses that have had a 30% or more decline in revenue due to the lockdown. This grant offers a one-off payment to eligible micro-businesses with an aggregated annual turnover between $30,000 and $75,000.

Applications will close at 11:59pm on 18 October 2021.

Any micro-business, sole trader or not-for-profit organisation with a national aggregated annual turnover between $30,000 and $75,000 that has been impacted by the lockdown can apply for this grant.

Examples of entities that may be eligible to apply:

  • sole trader or small business with or without employees
  • sole trader or small partnership impacted by sickness, injury or leave
  • partnerships
  • self-employed (with or without an ABN)
  • new business that was operating before 1 June 2021
  • business that was not operating for the full year to 30 June 2021
  • business acquisition, disposal or business restructure that has impacted the business’ turnover
  • business affected by drought, bushfire or other natural disaster
  • not-for-profit organisation.

Once your application has been accepted, you will receive automatic fortnightly payments of $1,500 from the start of the lockdown.

Payments will be made in arrears with the first payment backdated to 26 June 2021.

If you have employees, you must notify Service NSW if you do not maintain the number of employees you had on 13 July 2021. You will not need to re-apply.

If you do not employ staff, you cannot receive the COVID-19 micro-business grant if you or anyone associated with your business has received or is deriving income from the Australian Government’s COVID-19 disaster payment.

If you employ staff, you can receive this grant and your employees can also receive the Australian Government’s COVID-19 disaster payment.

Check the documents list to find out what you will need to provide with your application.

If you do not meet all of the eligibility criteria or have all of the supporting documentation, you may be able to provide alternative supporting evidence. Contact Service NSW to discuss your situation.

You can apply even if your ABN is registered in another state, but you will need to show that your business is operating in NSW.

  • Letter from your qualified accountant, registered tax agent or registered BAS agent (see our template letter) that outlines your
    • decline in turnover
    • aggregated annual turnover
    • proof that your business operates in NSW (if your ABN is registered in another state) which may include utility bills, insurance papers, supply invoices, registration papers, contractor licences.
  • Previously submitted letter from your qualified accountant, registered tax agent or registered BAS agent to Service NSW that verifies your business turnover and decline in revenue.

If you do not have either of these, you can provide evidence such as:

  • Australian Income Tax Return (you do not need to show a tax file number)
  • Business Activity Statement (BAS)
  • Business bank account statements (separate from any personal accounts) for a minimum 3-month period showing
    • a turnover of more than $30,000 and less than $75,000 (your quarterly bank statement will need to show turnover of $7,500 or more)
    • a decline in turnover of 30% or more over a minimum 2-week period during the lockdown compared to
      • the same period in 2019, or
      • the same period in 2020, or
      • the 2-week period immediately before lockdown commenced (11 June to 25 June 2021).
  • Extract from accounting software and an annotated personal bank statement.

To prove your business operates in NSW you can provide commercial rates notices or lease agreements.

If these documents are not available, Service NSW may accept a combination of the following:

  • utility bills
  • insurance papers
  • supply invoices
  • registration papers
  • contractor licences.

If you are a not-for-profit you will also need to provide all of the following:

  • a copy of your constitution (or a governing document such as articles of association)
  • minutes and resolutions from AGM (bi-annual meetings) for the previous 3 years
  • audited financial statements for the previous 3 years.
  • Letter of Authority – Your accountant or tax agent will need to be listed as a contact for your business on the Australian Business Register in order to submit an application on your behalf. If they are not listed, they will need to include a Letter of Authority with the application.
  • Aggregated annual turnover means your annual turnover (all ordinary income you earned in the ordinary course of running a business for the income year) plus the annual turnover of any entities you are connected with or that are your affiliates. For more information visit the Australian Taxation Office website.
  • Business Activity Statement (BAS) – How you lodge your BAS determines how you will be able to find your statements. For example, if you lodge through the ATO online services for business, your next statement will be available there. If your accountant lodges your BAS on your behalf, they will be able to assist you. For more information visit the Australian Taxation Office website.

 

 

 

 

Acoountant Letter re: Covid Grants, Jobsaver, or Federal Government Disaster Payment

We will charge $200.00 per letter if all information is available, if we are required to assist in determining the decrease of Income then there will be additional fees or if you require an additional appointment to complete your Accountant letter details. There will be a new blog on Monday  7 August 2021 which will provide all information you need to assist us with the low fee for the Accountant Letter for your claim where it be loss of income grant, jobsaver, or federal disaster payment.

Additional stimulus support for NSW businesses, households

Any questions please contact us and we will complete application forms and provide advice.

The federal government has announced it will up disaster relief payments by between $50 and $100, meaning eligible individuals will now be offered $375 or $600 per week for lost work as a direct result of the lockdown.

These payments will be available across NSW for the duration of the lockdown.

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.

A new grant program has also been introduced for smaller micro businesses with turnover between $30,000 and $75,000.

Businesses will benefit from payroll tax waivers of 25 per cent for businesses with Australian wages of between $1.2 million and $10 million that have experienced a 30 per cent decline in turnover.

 

NSW Government COVID – 19 Support Package

 COVID-19 Support Grants

Hospitality and Tourism

For businesses in the hospitality and tourism industry (total wages below $10 million), in recognition of the challenges lockdown poses to these businesses.

Eligible businesses receiving either the Small Business Grant or the Hospitality and Tourism Grant can receive:

  • $10,000 for a decline in turnover of 70%, or more
  • $7000 for a decline in turnover of 50%, or more
  • $5000 for a decline in turnover of 30%, or more.

Extension to Dine & Discover NSW

An extension to the Dine & Discover NSW Voucher program will give people across NSW the time to use their Dine & Discover NSW Vouchers and support local businesses once restrictions ease. The timeframe for Dine & Discover NSW has been extended to 31 August 2021.

Customers will also be able to redeem their Dine voucher on takeaway delivered from a business registered for the Dine component of Dine & Discover NSW.

  • Check with us regarding eligibility criteria

Small Business Grants and Non – Profit Organisations

Regional NSW businesses can apply if they have been impacted by the public health restrictions, given school holidays are an important trading period for businesses across NSW.  * Again please check with us before proceeding.

*Grants can only be used for specific purposes so check with us and we will provide you with information and application details required.

NSW Small Business Support Grants

The NSW government has announced grants of between $5,000 and $10,000 for small businesses, payroll tax deferrals for all employers and an extension of the Dine & Discover program as the state battles to contain the latest COVID-19 outbreak.

The NSW government is offering small businesses support grants to help alleviate cash flow constraints while trading is restricted, targeted particularly at sole traders and not-for-profit organisations, with expanded criteria to assist most hospitality and tourism operators.

Three different grant amounts will be available for small businesses depending on the decline in turnover experienced during the restrictions – $10,000 for a 70 per cent decline, $7000 for a 50 per cent decline and $5000 for a 30 per cent decline.

According to Premier Gladys Berejiklian, the funds, which are expected to hit accounts from next month, may be used to service expenses such as rent, utilities and wages, for which no other government support is available.

“The current restrictions are in place to protect people and keep the community safe, unfortunately businesses continue to incur costs such as rent, power and lost produce, and this will go some way to lessening that financial pain,” Ms Berejiklian said.

Applauding the NSW government’s latest announcement, Business NSW chief executive Daniel Hunter said the package is well targeted and is one of the “fastest and largest” business support packages from any state in response to the pandemic.

“Business NSW has been working with the government on this initiative since the lockdown was confirmed on Saturday, and by using the real experiences of our members, we were able to demonstrate the widespread need for a quick turn-around for this package,” Mr Hunter said.

Larger businesses haven’t been ignored either, with a number of state government taxes and charges deferred, with payments due later in the year.

Dine & Discover vouchers will also be extended until 31 August, and can now be used at takeaway venues, so long as that food is delivered, and not picked up.

“We all want this lockdown to be over as soon as possible, so businesses can get back to doing what they do best, employing people and supporting their local communities,” Mr Hunter said.

How do the grants work?

The grants will be divided into two streams:

  1. Small Business COVID-19 Support Grant. Available to businesses and sole traders with a turnover of more than $75,000 per annum but below the NSW government 2020 21 payroll tax threshold of $1,200,000 as at 1 July 2020.

These businesses must have fewer than 20 full time equivalent employees and an Australian Business Number (ABN) registered in NSW or be able to demonstrate they are physically located and primarily operating in NSW.

(Full criteria will be available in coming days on the Service NSW website).

  1. Hospitality and Tourism COVID-19 Support Grant. Available to tourism or hospitality businesses that have a turnover of more than $75,000 and an annual Australian wages bill of below $10 million, as at 1 July 2020.

These businesses must have an Australian Business Number (ABN) registered in NSW or be able to demonstrate they are physically located and primarily operating in NSW (Full criteria will be available in coming days on the Service NSW website).

Businesses will be able to apply for the grants through Service NSW from later in July and will need to show a decline in turnover across a minimum two-week period after the commencement of major restrictions on 26 June.

*Information provided by Services NSW and Publicaccountant the official journal of the Institute of Public Accountants.

It is recommended you seek advice from us before proceeding, as there are elements regarding the grants and elegilbility that will be disclosed later, prior to SME completing applications.