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.

Small Business Newsroom

Please seek our advice before proceeding

 

Give or receive a COVID-19 rent concession?

 

12 July 2021

Do you rent your business premises? Or are you a landlord who rents out commercial property?

If your landlord gave you a rent concession, or if you’re a landlord who has given a rent concession to a tenant because of COVID-19, you need to consider this in your tax returns.

There may be changes to the income you declare, deductions you can claim and your GST and capital gains tax (CGT) obligations.

The changes will depend on:

  • the type of rent concession (such as a waiver or deferral) you’ve received or given
  • if an existing agreement has changed, or a new or additional agreement has been created.

For landlords, the changes will also depend on whether you use cash or accruals accounting.

For example, if you are a tenant that had already paid your rent for August 2020 but your landlord waived and refunded the amount to you, you’ll still be entitled to claim a deduction for the rent in your 2020–21 tax return. However, you should also include the refunded amount in your assessable income.

Remember, registered tax and BAS agents can help you with your tax.

Find out about:

GST tips this tax time

8 July 2021

When doing your tax this year, take the opportunity to check:

  • for missed GST credits from purchases you claimed an income tax deduction for – a four-year time limit applies for claiming GST credits
  • that you’re using the most suitable accounting method to meet your business needs
  • if GST applies to any transactions from fundraising you helped with this year
  • that stimulus vouchers have been accounted for correctly, where you participated in a government stimulus voucher program.

It’s important to lodge all outstanding activity statements before you lodge your tax return, so your tax assessment includes the instalments you’ve paid throughout the year.

Remember, registered tax agents and BAS agents can help you with tax.

Reporting income or claiming a deduction?

 

12 July 2021

When you’re lodging your business tax return each year, it’s important to include all income you make through your business.

This includes income you earn from:

  • personal services you provide
  • investments
  • the sharing economy, such as ride-sourcing
  • assessable government grants and payments, such as JobKeeper and JobMaker Hiring Credits.

You might receive payment in the form of:

  • cash and digital payments
  • vouchers or coupons, such as state government stimulus vouchers.

You can claim a deduction for most of the costs of running your business.

If you’re in an industry that requires physical contact with customers, such as healthcare, retail or hospitality, you can claim deductions for expenses related to COVID-19 safety. This includes hand sanitiser, sneeze or cough guards, other personal protective equipment and cleaning supplies.

Keep in mind the three golden rules for deductions:

  • The expense must have been incurred for your business.
  • If the expense is for a mix of business and private use, only claim the portion used for your business.
  • You must have records to substantiate the expense and show how you worked out the business portion.

Find out about:

Made a mistake on your BAS?

 

14 July 2021

Made a ‘mistake’ on your business activity statement (BAS)? Don’t worry, most mistakes (like the one in the title of this article!) are easy to fix.

A mistake is an amount that was incorrect when you lodged. For example:

  • clerical or transposition errors
  • classifying a GST-free sale or purchase as taxable
  • classifying a taxable sale or purchase as GST-free
  • double-counting some of your purchases.

If you’ve made a mistake, you can fix it on your next BAS or revise the original.

Sometimes, a sale or purchase that was reported correctly at the time of lodgment may change later. For example:

  • the price changes
  • the goods are returned and the sale is cancelled.

  • Do you need mistakes fixed give us a call and we will assist you?

 

Learn about what STP Phase 2 means for you

 

  • 12 July 2021

    Single Touch Payroll (STP) Phase 2 reporting starts 1 January 2022. If you employ staff, you’ll need to be ready for this change. New guidelines that explain the changes are now available to help.

    STP Phase 2 reporting means changes to the way you report:

    • amounts paid to staff – instead of reporting a single gross amount, you’ll separately show items such as overtime, paid leave, and bonuses and commissions
    • income types – you’ll include information such as whether a payment is regular salary and wages or income for working holiday makers
    • employment conditions – you’ll provide some additional information such as whether your employee is fulltime, part-time or casual and if they leave, the reason they stop working with you.

    The way you lodge and the due date of your STP reports don’t change.

    Your STP-enabled software will be updated by your software provider. When it is updated the software provider will let you know the next steps you should take.

    Check our guidelines to help you understand the changes and what they mean for you.

    Pay contractors?

     

    • 8 July 2021

      You may need to lodge a Taxable payments annual report (TPAR) by 28 August if your business pays contractors to provide the following services:

      • building and construction
      • cleaning
      • courier services
      • road freight
      • IT and security
      • investigation or surveillance.

      Doing your TPAR involves three steps:

      • Prepare – work out if you need to report. Due to COVID-19, you may have contracted out more services in the past year, for example cleaning or delivery, so you may need to lodge a TPAR for the first time.
      • Record – check you’re keeping the right records, such as total payments you make to each contractor for services. This includes cash payments.
      • Report – lodge your TPAR online by 28 August. Lodging on time allows us to prefill the information in sole traders’ tax returns. It also lets us check for contractors not meeting their tax obligations, as we work to keep it fair for those who do the right thing.

      Remember, registered tax agents and BAS agents can help you with your tax.

      Find out more: