NSW COVID-19 Support

By the leaders at PKF NSW

26 August 2021
  • COVID-19
  • Business support
  • Individual support

The New South Wales (NSW) Government has developed a wide range of support measures for businesses to help them survive this difficult period and continue to add to and amend the eligibility requirements to be able to access this assistance.

Summary of the measures available:

Retail and commercial rent relief

Landlords who provide rent relief to eligible lessees will be entitled to land tax relief of equivalent value, up to a maximum of 100% of their land tax liability for 2021 on the relevant property, and may also be entitled to monthly grants from the NSW Government.
The NSW Government has passed the Retail and Other Commercial Leases (COVID-19) Regulation 2021 to assist retail and commercial tenants impacted by the escalating COVID-19 pandemic. The Regulation takes effect from 13 August 2021 until 13 January 2022.

To be eligible for support a tenant must:

  • have entered into their lease on or before 26 June 2021 and:
  • have an annual turnover of less than $50 million in 2020-21;
  • qualify for one or more COVID-related government support payment (the Micro-business COVID-19 Support Grant, the COVID-19 NSW Business Grant and/or the Job Saver Grant); and
  • provide documentation to their landlord evidencing the above

NSW 2021 COVID-19 Business Grant

A NSW business that has an aggregated turnover of $75,000 to $50 million (inclusive), total Australian wages of no more than $10 million, maintains its staffing levels as of 13 July 2021 and has a decline in its GST turnover of at least 30%, may be eligible for a tax-free one off Grant of up to $15,000.

The decline in turnover will determine the size of the grant:

  • a $7,500 grant is available where the business experiences a decline of 30% or more;
  • a $10,500 grant is available where the decline is 50% or more;
  • a $15,000 grant is available where the decline is 70% or more.

The decline in turnover is determined by a minimum two-week consecutive period from 26 June 2021 to 17 July 2021 compared to the same period in 2019, 2020 or the two weeks immediately prior to the initial Sydney lockdown on the 26th June 2021.

2021 COVID-19 JobSaver payment

Commencing from the fourth week of a lockdown, picking up after the above grant. A business is eligible for a tax-free JobSaver payment if it has an aggregated turnover of $75,000 to $250 million (inclusive), maintains its staffing levels as of 13 July 2021 and has a decline in its GST turnover of at least 30%.

The fortnightly JobSaver payment is equal to 40% of the NSW weekly payroll capped at $100,000 per week. Employing entities will receive a minimum fortnightly payment of $1,500 per week, while non-employing entities will receive a flat fortnightly payment of $1,000 per week.

The decline in turnover is determined by a minimum two-week consecutive period within the Greater Sydney lockdown period (from 26 June 2021 to 28 August 2021, expected to be further extended) compared to the same period in 2019, 2020 or the two weeks immediately prior to the initial Sydney lockdown on the 26th June 2021.

NSW 2021 COVID-19 Micro-business Grant

For those smaller businesses ineligible for the above with a annual turnover of $30,000 to less than $75,000 and maintains its staffing levels as of 13 July 2021 (if it has employees) and has a decline in its GST turnover of at least 30%, may be eligible for a tax-free Grant of $1,500 per fortnight.

The decline in turnover is determined by a minimum two-week consecutive period within the Greater Sydney lockdown period (from 26 June 2021 to 28 August 2021, expected to be further extended) compared to the same period in 2019, 2020 or the two weeks immediately prior to the initial Sydney lockdown on the 26th June 2021.

NSW Small business fees and charges rebate

The Rebate is available to businesses operating in NSW that have total Australian wages of less than $1.2 million and have eligible NSW and local government fees and charges due and paid from 1 March 2021. The Rebate takes the form of a $1,500 digital voucher. Applications for the Rebate can be made until 30 June 2022.

If you believe you are eligible for any of the above and have not been in touch with our team please do not hesitate to contact our office we are happy to help.

Test and isolate support payment

A one-off payment of $320 to financially support NSW workers in eligible local government areas, who must isolate at their place of residence to wait for their test results after being required to undergo a COVID-19 test, as well as carers and/or guardians who must care for someone who is required to isolate following a COVID-19 test.

NSW Payroll tax concessions

A waiver of 25% to annual tax liability is available for eligible businesses with grouped Australian wages of $10 million or less in the 2021/22 financial year, who experience a 30% or more decline in turnover.

NSW Land tax concessions

A waiver of up to 100% is available to commercial and residential landowners who have reduced their tenants’ rent due to COVID-19, between 1 July 2021 and 31 December 2021. The owner must have also provided the rent reduction without any requirement for it to be paid back and for commercial leases the tenant must have an annual turnover of up to $50 million and be eligible for one of the business support payments/grants.

 

Residential tenancy support payment

A capped tax grant of up to $3,000 for landlords will increase from the original $1,500 from 27 August 2021. For businesses that have already applied for the original amount, you will need to lodge a second claim of up to $1,500 and provide a new completed Rent Variation agreement.  

Short term eviction moratorium and other tenancy safe guards

Where a residential tenant suffers loss of income of 25% due to COVID-19, restrictions are in place to protect the tenant. For eligible tenants, a 60 day freeze on evictions is in place until 11 September 2021. This protection applies to all residential tenancy agreements, including both informal and unwritten agreements.

COVID-19 Disaster Payment

The Disaster Payment provides weekly payments of $750 for those workers who have lost 20 or more hours of work per week, or $450 for those who have lost at least eight hours but less than 20 hours of work per week, where they work or live in a Commonwealth-declared hotspot.

Eligible employees who have lost hours of work can receive Disaster Payments and this does not preclude their employer from being eligible for other support measures. So businesses and their employees can be receiving both.

Pandemic Leave Disaster Payment

$1,500 per fortnight is available for those who are unable to work due to a requirement to self-isolate or quarantine, or if you are caring for someone with COVID-19.