SMEs in locked down parts of NSW can now apply for grants of up to $10,000 to ease cash flow woes with payroll tax deferrals also applicable to all employers as part of the NSW Government’s response to the current lockdown.
Three different grant amounts will be available for small businesses depending on the decline in turnover experienced during the restrictions – $10,000 for a 70 per cent decline, $7000 for a 50 per cent decline and $5000 for a 30 per cent decline.
Businesses will be able to apply for the grants through Service NSW from later in July and will need to show a decline in turnover across a minimum two-week period after the commencement of major restrictions on June 26, the NSW Government says.
The Dine & Discover program has also been extended to August 31 with those vouchers also now able to be used for takeaway options.
The support was announced yesterday, three days into a two-week lockdown for Greater Sydney, Blue Mountains, Shellharbour and the Central Coast.
NSW Premier Gladys Berejiklian said the small business grants are designed to alleviate cash flow constraints while trading is restricted. The grants can be used for business expenses such as rent, utilities and wages, for which no other government support is available.
“We always said we will do whatever it takes to support businesses and keep people in jobs during the pandemic and that is exactly what we are doing,” Berejiklian said in a statement.
“The current restrictions are in place to protect people and keep the community safe, unfortunately businesses continue to incur costs such as rent, power and lost produce, and this will go some way to lessening that financial pain.”
NSW Treasurer Dominic Perrottet said the small business grants are available for sole traders and non-for-profit organisations with expanded criteria to assist most hospitality and tourism operators hit hard by restrictions during the school holidays.
NSW Government Info:
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 per annum but below the NSW Government 2020 21 payroll tax threshold of $1,200,000 as at 1 July 2020.
These businesses must have fewer than 20 full time equivalent employees and an Australian Business Number (ABN) registered in New South Wales or be able to demonstrate they are physically located and primarily operating in New South Wales.
(Full criteria will be available in coming days on the Service NSW website).
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 Australian wages bill of below $10 million, as at 1 July 2020.
These business must have an Australian Business Number (ABN) registered in New South Wales or be able to demonstrate they are physically located and primarily operating in New South Wales. (Full criteria will be available in coming days on the Service NSW website).
Comment below to have your say on this story.
If you have a news story or tip-off, get in touch at editorial@sprinter.com.au.
Sign up to the Sprinter newsletter