Has your business been affected by the recent snap lockdowns announced in NSW?
If so, please see below for the support tax free measures available to you and your business should you be eligible:
NSW 2021 COVID-19 business grant
Applications will close after 11:59 pm on 13 September 2021
Otherwise eligible NSW businesses (including sole traders and not-for-profit organisations) with:
- an aggregated annual turnover of between $75,000 and $50 million (inclusive) for the year ended 30 June 2020; and
- total annual Australian wages of $10 million or less as at 1 July 2020;
can potentially claim grants between $7,500 and $15,000.
These grants were designed to provide businesses with cash flow support for the first three weeks of the Greater Sydney lockdown (i.e., from 26 June to 17 July 2021).
Three different grant amounts will be available depending on the decline in turnover experienced during the restrictions, being:
- $7,500 for a decline of 30% or more;
- $10,500 for a decline of 50% or more; or
- $15,000 for a decline of 70% or more.
NSW 2021 JobSaver payment
Eligible businesses with an aggregated turnover of less than $50 million would get this tax-free status
Applications will close at 11:59 pm on 18 October 2021
Otherwise eligible NSW businesses, sole traders and not-for-profit organisations with:
- an annual turnover of between $75,000 and $250 million; and
- which can demonstrate a 30% reduction in turnover (compared to an equivalent two-week period);
are entitled to a JobSaver cash flow boost via fortnightly payments from week four of the current NSW lockdown.
Eligible entities will receive 40% of their NSW payroll payments, at a minimum of $1,500 and a maximum of $100,000 per week from 18 July 2021 onwards.
Assistance will cease when the current lockdown restrictions are eased, or when the Commonwealth hotspot declaration is removed.
To receive the payment, employing entities will be required to maintain their staffing level as of 13 July 2021.
For non-employing businesses (e.g., eligible sole traders) the payment will be set at $1,000 per week.
Micro business grants
Refer also to the COVID-19 business grants comparison
Applications will close at 11:59 pm on 18 October 2021.
Otherwise eligible ‘micro businesses’ (including small business, sole traders and not-for-profit organisations) with:
- an annual aggregated turnover of between $30,000 and $75,000 for the year ended 30 June 2020;
- that have experienced a decline in turnover of at least 30% over a minimum two-week period within the Greater Sydney lockdown;
may be eligible for payments of $1,500 per fortnight to cover business expenses for the duration of the lockdown.
Another requirement of this payment is the recipient must not have applied for either the NSW 2021 COVID-19 business grant or the NSW JobSaver payment.
Employing businesses are also required to maintain their employee headcount from 13 July 2021 while receiving payments from the grant. Eligible non-employing business must have the business as their primary source of income.
NSW Payroll tax concessions
NSW payroll tax concessions include:
- Payroll tax waivers of 25% for businesses with grouped Australian wages of between $1.2 million (the current payroll tax tax-free threshold) and $10 million that have experienced a 30% decline in turnover.
- Payment deferrals and interest free repayments.
NSW Land tax concessions
Land tax relief equal to the value of rent reductions provided by commercial and residential landlords to eligible tenants is available for up to 100% of the 2021 NSW land tax year liability.
Note: A property can receive either this land tax relief or the Residential Tenancy Support Payment (but not both).
Residential Tenancy Support Payment
A capped tax grant (i.e., a tenancy support payment) of up to $1,500 (per tenancy agreement) for residential landlords who are not liable to pay land tax who reduce rent (or who choose this over the land tax relief set out above).
Short term eviction moratorium and other tenant safe guards
The NSW Government will introduce a short-term eviction moratorium for rental arrears where a residential tenant suffers loss of income of 25% due to COVID-19 and meets other eligibility criteria. In addition, it will restrict recovery of security bonds, lockouts or evictions of impacted retail and commercial tenants prior to mediation.
Furthermore, the NSW Government is providing land tax relief or alternatively tenancy support payments.
Targeted industry support
Other targeted industry support measures include:
- The deferral of gaming tax assessments for clubs until 21 December 2021 and hotels until 21 January 2022.
- A $75 million support package for the performing arts sector (administered by Create NSW).
- A $26 million package for the accommodation sector.
For further information please visit: https://www.service.nsw.gov.au/2021-covid-19-business-grant-guidelines
If you would like assistance please complete our online enquiry via our contact us button or by calling a GM Tax office closest to you.