The NSW Government has announced a new grants package and changes to the Dine & Discover program to help businesses across NSW impacted by the current COVID-19 lockdown.
The package includes:
- business support grants of between $5000 and $10,000;
- an extension of the Dine & Discover program; and
- payroll tax deferrals for employers.
Business support grants
The centrepiece of the package is a business support grant program to assist businesses while trading is restricted. This can be used for business expenses such as rent, utilities and wages, for which no other government support is available.
Businesses will be able to apply for the grants through Service NSW from later in July.
The amount of the grant will depend on the decline in turnover experienced during the lockdown:
- $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.
Businesses will need to show a decline in turnover across a minimum two-week period after the commencement of the lockdown on 26 June 2020. Businesses will be able to apply through Service NSW. Further details are expected from Service NSW when the application process is announced later in July.
The grants are available across NSW, including regional areas. This is in recognition of the fact the latest restrictions coincide with school holidays when regional areas were expecting a boost from tourism.
There are two separate grants available. The Small Business COVID-19 Support Grant and the Hospitality and Tourism COVID-19 Support Grant. The eligibility criteria of each are as follows:
- The Small Business COVID-19 Support Grant
Available for not-for-profits and NSW businesses (including sole traders) if they:
- have an ABN registered in NSW, or the business can demonstrate that they have a physical location in NSW and primarily operate in NSW;
- have an annual turnover greater than $75,000 per annum on 1 June 2021;
- have fewer than 20 full time equivalent employees;
- have salary and wages below the NSW payroll tax threshold of $1,200,000 on 1 July 2020; and
- have not applied for or received the Hospitality and Tourism COVID-19 Support Grant
2. The Hospitality and Tourism COVID-19 Support Grant
Available for NSW businesses if they:
- have an ANZSIC code that is classified as a tourism or hospitality business
- have an ABN registered in NSW, or the business can demonstrate that they have a physical location in NSW and primarily operate in NSW;
- have an annual turnover greater than $75,000 on 1 June 2021
- have salary and wages of less than $10 million on 1 July 2020
- have not applied for or received the Small Business COVID-19 Support Grant.
Extension to Dine & Discover NSW
To support local businesses once restrictions ease, the Dine & Discover voucher program has been extended to 31 August 2021.
In the meantime, the use of Dine vouchers will be extended to takeaway delivered by the business itself. The use of third-party delivery platforms does not qualify.
Deferral of payroll tax
The due date for the lodgement and payment of the 2021 annual reconciliation has been extended to 30 August 2021.
The due date for the July 2021 monthly return remains unchanged and payments are due on 9 August 2021.
An optional deferral of payroll tax is available however where businesses are having difficulty making the payments because of the latest lockdown. These will be addressed on a case by basis, so contact with the Office of State Revenue should be made as earlier as possible to discuss alternative payment arrangements.
If you have any questions in relation to the whether you qualify for one of these grants, please contact Calibre Business Advisory’s team of experienced business advisors and tax accountants. As a leading provider of business advisors in Sydney, we can assist you in evaluating whether you qualify for a grant and in making any application. If you have any questions, do not hesitate to contact us on 0292612177.