The New South Wales Government has released more information about the financial assistance packages available to businesses and individuals.
While the government support packages are very welcome, businesses also need to consider a range of issues around cashflow, debt, and customer retention too.
Read on to find out what’s available, and what to do next.
By ATB Partners
The COVID disaster payment is available to individuals who have had their work affected by the latest outbreaks in NSW. Payments are available now – there are two tiers of payments.
The maximum COVID disaster payment has been increased to $750, while the payment for those working less than 20 hours has been increased to $450.
Support will also be extended to those who are on welfare payments such as Youth Allowance – these people will be eligible for a part-payment of $200 if they have lost more than eight hours of work a week. For more detailed information, check here.
JobSaver payments will now be available to businesses with an annual turnover of between $75,000 and $250 million, up from $50 million, which have experienced a revenue decline of 30% or more.
The maximum weekly payment has also been substantially increased. Businesses that maintain their employee headcount are now able to receive between $1,500 and $100,000 per week, up from $10,000, with payments based on 40% of their weekly NSW payroll.
JobSaver will provide cash flow support to impacted businesses to help maintain employee headcount as of 13 July 2021.
Payments are backdated to cover costs incurred from week four of the lockdown (from 18 July 2021 onwards).
Businesses can expect to receive funds in their accounts within 5-10 business days from the approval date, arrangements will be backdated, so businesses that have already received a first payment on previous settings will be topped up when their next payment is made.
Non-employing businesses remain eligible for a maximum of $1,000 per week.
Micro Business support
$1,500 per fortnight is available for businesses earning between $30k and $75k where the business provides the primary income source for a person associated with the business.
These businesses need to prove a revenue decline of 30% or more. Micro Businesses cannot apply for both the Business Grant (below) and the Micro Business support, it has to be one or the other.
COVID Business Grants
A one-off payment is available of between $7,500 to $15,000 depending on the decline in turnover. This grant only applies to the losses incurred in the first three weeks of the lockdown. To be eligible, businesses need to demonstrate a revenue decline of 30% or more, and annual turnover above $75,000 and payroll up to $10 million.
Payroll tax deductions and payroll tax deferrals are also available. Speak with your accountant, or talk to Revenue NSW.
If you’re a struggling business, talk to your landlord. Landlords cannot evict tenants at this time without going through a formal mediation process and many will be happy to negotiate rather than have premises completely vacated.
Support is available for Landlords and it will come in the form of up to 100% land tax relief for landowners who reduce rent for COVID-19 affected tenants between 1 July and 31 December 2021. Landowners who do not pay land tax can alternatively apply for up to $1500 grant per residential tenancy.
For more information, you can view the detailed information in the attached PDF.
You can apply for all COVID financial assistance through Service NSW. Most businesses will need a support letter / document from their accountants, which we are happy to provide.
While to some extent while we had a ‘dress rehearsal’ of all this last year, it’s not really possible to just create a carbon copy of the business continuity plans you put in place at that time. So get professional advice.
Other critical steps you will need to consider at this time include negotiating with financiers and your suppliers if you’re struggling with cash flow.
Be open and honest with customers – with so much upheaval, straight talking is the best way to deal with the current situation, especially as the lockdowns look set to continue for some time. There’s just no sugarcoating the current situation, and there’s no need to.
Most importantly, look after your health, and in particular, your mental wellbeing. Stress and uncertainty of this kind affects everybody differently, and it can compound over time. If you need help, then reach out for it.
We’re here to support you at every step of the way, whether it’s with your application via Service NSW, or helping you to plan the financial future, short and long term.
Our team are working remotely, but we’re only a phone call or an email away.