New economic support measures for businesses affected by lockdown

New economic support measures for businesses affected by lockdown

The new breakout of covid cases in July 21 is yet another kick in the teeth for business owners, but there is some good news with the NSW Government’s release of new measures to help those affected.

A new Covid-19 support package was announced on 13 July along with some increases to previously announced features of the relief package/fighting fund. We have included a summary of the package along with access to support below.

Where to apply

There is already some information on some measures available on the Service NSW website. The NSW Government is encouraging all small businesses who need Covid-19 support to visit the Covid-19 information hub. According to media releases, more information will be added throughout this week.

The key points

  • An extension to the previously announced business grants program. This means eligible businesses with Australian wages below $10 million can claim grants between $7500 and $15,000 to cover the first three-weeks of restrictions, and takes the potential size of the program to $2.1 billion;
  • Up to $2 billion committed to the scheme to provide cashflow support to businesses to help them retain staff, to be delivered together with the Commonwealth.
  • 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;
  • A new grants program for micro businesses with a turnover of between $30,000 and $75,000 which experience a decline in turnover of 30 per cent. The businesses will be eligible for a $1500 payment per fortnight of restrictions;
  • A capped grant of up to $1500 for residential landlords who are not liable to pay land tax who reduce rent for tenants estimated at $210 million;
  • Land tax relief equal to the value of rent reductions provided by commercial, retail and residential landlords to financially distressed tenants, up to 100 per cent of the 2021 land tax year liability;
  • Introduction of legislative amendments to ensure a short-term eviction moratorium for rental arrears where a residential tenant suffers loss of income of 25 per cent due to COVID-19 and meets a range of criteria;
  • No recovery of security bonds, or lockouts or evictions of impacted retail and commercial tenants prior to mediation;
  • Deferral of gaming tax assessments for clubs until 21 December 2021 and hotels until 21 January 2021;
  • A $75 million support package for the performing arts sector to be administered by Create NSW;
  • A support package for the accommodation sector worth $26 million;
  • $12 million in additional funding for temporary accommodation for those at risk of or experiencing homelessness, and
  • $5.1 million in NSW funding to support mental health.

Assistance

We understand that assessing your eligibility and completing the application processes can be time-consuming and at times difficult. If you need any help working out your eligibility or preparing your application then please make an appointment with one of our Business Advisors.

We wish all business owners and their employees the very best during these trying times.

More Coronavirus information

Click here to find more content on the Covid 19 pandemic and associated support.

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