Here’s a summary of current NSW financial support for business:
1. Once-off business grant – the NSW Government is providing a once-off grant to eligible businesses ranging from $7,500 to $15,000, to cover the first three weeks of lockdown. Applications will open on 19 July 2021. Eligible conditions include:
- Turnover more than $75k -Total wages below $10mil
- Turnover decline by at least 30℅.
- Business maintain employee headcount as at 13 July 2021.
- Grant is used to pay for business costs that not covered by other government support, Three different grant amounts will be available depending on the decline in turnover experienced over a minimum 2-week period from 26 June 2021 to 17 July 2021, compared to the same period in 2019
2. Saving jobs support program – from 26 July, as a joint NSW and federal initiative, tax-free business grants of between $1,000 to a maximum of $10,000 per week. Direct cash payments equal to 40% of the NSW payroll of eligible businesses and not-for-profits with an annual turnover of between $75,000 and $50 million. Applicants must demonstrate at least a 30% decline in turnover and maintain staffing levels as of 13 July 2021. For non-employing businesses such as sole traders, a fixed payment of $1,000 per week will be available
3. Microbusinesses – with annual turnover between $30,000 and $75,000 will be eligible for fixed fortnightly payments of $1,500 per fortnight if they demonstrate a 30% decline in revenues during restrictions. These payments will be backdated to week one of lockdown.
Payments to individuals – have been expanded, with those eligible for a Federal Government lump sum grant now receiving up to $600 through the COVID-19 Disaster Payment scheme.
4. Payroll tax – 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, as well as payroll tax deferrals and interest free repayment plans. Payroll tax liabilities will also be deferred for two months.
5. Landlords – Residential landlords who decrease rent for impacted tenants can apply for a grant of up to $1,500 or land tax reductions depending on their circumstances. The land tax relief will be equal to the value of rent reductions provided by landlords to financially distressed tenants, up to 100 per cent of the 2021 land tax year liability.
6. Land tax – Land tax relief equal to the value of rent reductions provided by commercial and retail landlords to financially distressed tenants, up to 100 per cent of the 2021 land tax year liability
Horwood Partners has created a summary which can be download here:
Contact us now for a tax planning session to see if these deductions apply to you.