The NSW Government has announced a major new grants package, payroll tax deferrals and changes to the Dine & Discover program to help small business and people across NSW impacted by the current COVID-19 restrictions.
Three different grant amounts will be made available for small businesses depending on the decline in turnover experienced during these restrictions.
- $5,000 for a 30% decline
- $7,000 for a 50% decline
- $10,000 for a 70% decline
Grants can be used for business expenses such as rent, utilities and wages, for which no other government support is available. These grants will be made available across NSW, including regional areas.
The grants will be divided into two streams:
1. Small Business COVID-19 Support Grant: Available to businesses, sole traders and non-for-profit organisations with a turnover of more than $75,000 p.a. 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 ABN registered in New South Wales or be able to demonstrate they are physically located and primarily operating in New South Wales.
2. Hospitality and Tourism COVID-19 Support Grant: Available to tourism or hospitality businesses that have a turnover of more than $75,000 p.a. and an annual Australia wages bill of below $10 million, as at 1 July 2020.
These businesses must have an ABN registered in New South Wales or be able to demonstrate they are physically located and primarily operating in New South Wales.
Businesses will be able to apply for the grants through Service NSW later in July and will need to demonstrate a decline in turnover across a minimum two-week period after the commencement of the major restrictions on June 26.
The NSW Government has also announced the following initiatives as part of the package.
- An optional deferral of payroll tax payments due in July 2021 and the deferral of hotel June quarter gaming machine tax, with the Chief Commission of State Revenue able to provide for appropriate repayment arrangements on a case by case basis.
- A further one month extension of Dine & Discover vouchers until 31 August 2021.
- Dine & Discover vouchers will be able to be use for takeaway from eligible and registered Dine businesses during the restriction period, but food must be delivered direct to the home by the restaurant or café and not picked up. Dine & Discover vouchers cannot be redeemed for takeaway using third party delivery platforms.
- More than $11 million for increased support for people at risk of homelessness plus assistance to vulnerable temporary visa holders, asylum seekers and refugees.
More information will be made available in the coming days via the Service NSW website. Please contact your trusted Prosperity Adviser with any questions on how this may impact your business.