The NSW government is offering businesses support grants to help alleviate cash flow constraints while trading is restricted. The grants can be used to cover business related expenses such as rent, utilities and wages, for which no other government support is available.
This includes:
- Business related costs such as utilities, wages, rent;
- Financial, legal or other advice to support business continuity planning;
- Marketing and communications activities to develop the business;
- The cost of perishable goods that can no longer be used; or
- Other activities to support the operation of the business.
The grant program extended by the NSW government will be delivered under two separate streams.
It is important to note that only one stream is available per entity.
1. Small Business COVID-19 Support Grant Stream
Grants of up to $15,000 will be available under this scheme which is designed for sole-traders and not-for-profit organisations.
Three separate grant amounts will be provided under this arrangement depending on the decline in turnover a business has experienced during the restrictions.
Businesses must have a decline in turnover of at least 30% in the two-week period following the lockdown.
The total amount of the grant businesses may receive will depend on the decline in turnover measured by a specific percentage as follows:
- $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.
1.1 Who is Eligible for the Small Business Covid-19 Support Grant?
To be eligible under this scheme, businesses must satisfy the following criteria:
- have fewer than 20 full time equivalent employees;
- have a registered Australian Business Number (ABN) or be able to demonstrate that they are physically located and primarily operating in New South Wales;
- Have total annual wages within Australia below the NSW payroll tax threshold of 1,200,000 as at 1 July 2020;
- Have an annual turnover above $75,000 as at 1 June 2021;
- Have business costs for which there is no other government support available; and
- Have not applied for, or received, the Hospitality and Tourism Covid-19 Support Grant.
2. Hospitality and Tourism COVID-19 Support Grant
Designed for and available to tourism and hospitality businesses with a turnover of more than $75,000 and an annual Australian wages expense below $10 million, as at 1 July 2020.
Grants of up to $10,000 available for small businesses, sole traders and not-for-profit organisations in the tourism or hospitality sectors that have been impacted by the June/July 2021 Greater Sydney COVID-19 restrictions.
Three separate grant amounts are available depending on the decline in turnover experienced during the restrictions:
- $5,000 for a decline of 30 per cent or more;
- $7,000 for a decline of 50 per cent or more; and
- $10,000 for a decline of 70 per cent or more.
2.1 Who is eligible for the Hospitality and Tourism COVID-19 Support Grant?
Businesses that meet the following criteria are eligible:
- Have an ANZSIC code that is classified as a tourism or hospitality business;
- Have an ABN registered in NSW or be able to demonstrate that they are physically located and primarily operating in NSW. Only one grant is available for a single ABN;
- Have total annual Australian wages below $10 million as at 1 July 2020;
- Have an annual turnover of more than $75,000 as at 1 June 2021;
- Have business costs for which there is no other government support available; and
- Have not applied, or received, a 2021 Small Business COVID-19 Support Grant.
Business in Regional NSW affected by the lockdown are also eligible for the grants should they meet all relevant eligibility criteria under the respective streams.
How to Apply:
Applications for the Covid-19 Business Grant must be made through Service NSW. Applicants will be required to provide the following details:
- Proof of ID;
- A valid ABN/ARBN number;
- Business banking details for payment;
- Australian income tax return or notice of assessment;
- Details of a qualified accountant, registered tax agent or registered BAS agent.
Businesses will also need to provide a letter of support from a qualified accountant, registered tax agent or registered BAS agent.
Applications for the Covid-19 Business Grant are now open and will continue until 11:59pm on 13 September 2021.
Businesses that were not trading in June/July 2019 may still be able to apply for the grants.
Please contact us at info@bdwelsh.com if you require assistance with your application for the Covid-19 Business Grant.
Please Note: Many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances.