NSW Small Business COVID-19 Support Grant

Jun 29, 2021

NSW State Government announces a COVID-19 Small Business Relief Package.

The scheme will give grants between $5,000 to $10,000 for small businesses. The Governments goal is to minimise cashflow constraints and the grant can be used to cover business expenses including rent, utilities and wages, whilst trading is restricted.

Summary of Relief Available:

Grants will vary from $5,000 to $10,000 for small businesses
Payroll tax deferrals for all employers
An extension of the Dine & Discover program to 31 August
The ability to use Dine & Discover vouchers for takeaway orders delivered directly to people's homes by the affected business
New Sydney CBD Voucher Program to turbocharge city-based businesses

The Grants will be divided into two streams:

1. SMALL BUSINESS COVID-19 SUPPORT GRANT

Available to businesses and sole traders with a turnover of more than $75,000 p.a. but below the NSW Government 2021/21 payroll tax threshold of $1.2m as at 1 July 2020.
These businesses should have fewer than 20 full time equivalent employees
Must have an ABN registered in NSW or demonstrate you are physically located and operate in NSW.

2. HOSPITALITY AND TOURISM COVID-19 SUPPORT GRANT

Available to tourism or hospitality businesses that have a turnover of more than $75,000 and an annual wages bill of less than $10m as at 1 July 2020
Must have an ABN registered in NSW or demonstrate you are physically located and operate in NSW

The Grants will commence from late July and businesses will need to show a turnover decline across a minimum of two weeks from June 26, 2021.

The Grants will be available in three different tiers depending on the decline in turnover experienced during the restrictions:

$10,000 for a 70% decline
$7,000 for a 50% decline
$5,000 for a 30% decline

The program is available across the entire state to also alleviate losses incurred by rural businesses due to reduced tourism at the hands of the lockdown.

More information and full criteria for eligibility will follow as soon as the NSW Governement release details.

Eligibility Criteria

Small businesses and not-for-profits will be eligible for the 2021 Small Business COVID-19 Support Grant if they:

have fewer than 20 FTE (including non-employing businesses)
have an Australian Business Number (ABN) registered in NSW or can demonstrate they are physically located and primarily operating in NSW. Only one grant is available for a single ABN
have total Australian annual wages below the NSW Government 2020-2021 payroll tax threshold of $1,200,000 as at 1 July 2020
have an annual turnover of more than $75,000 as at 1 June 2021
have not applied for, or received, the Hospitality and Tourism COVID-19 Support Grant
have business costs for which there is no other government support available.

Tourism and Hospitality Businesses

Tourism and hospitality businesses will be eligible for a Hospitality and Tourism COVID-19 Support Grant if they:

have an ANZSIC code that is classified as a tourism or hospitality business
have an Australian Business Number (ABN) registered in NSW or can demonstrate 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 not applied for, or received, a 2021 Small Business COVID-19 Support Grant
have business costs for which there is no other government support available.

Sole Traders and Not-For-Profits

Sole traders and not-for-profits can apply if they have turnover over $75K and meet all other eligibility criteria.

Regional NSW Businesses

Regional NSW businesses can apply if they have been impacted by the public health restrictions, given school holidays are an important trading period for businesses across NSW.

What Can The Grants Be Used For:

Grant funds can be used for business expenses for which no other government support is available, for example:

meeting business costs, including utilities, wages and 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
other activities to support the operation of the business.

How to apply

Applications for grants must be made through Service NSW, with the application process due to go live later in July 2021.

To apply, businesses will need to compare their turnover over a minimum two-week period after lockdown commenced, to a minimum two-week period in June and/or July 2019.

Businesses that were not operating in June/July 2019 may still be able to apply for the grants. These businesses should contact Service NSW to discuss their application.

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