Our thoughts are with all our clients in Sydney and New South Wales this week, as small businesses are forced to suffer through yet another punishing lockdown.
In case you weren’t already aware, I wanted to share some information about the support package recently announced by the NSW State Government – NSW Business Grants.
Announced last week, the centrepiece of the support package are grants of between $5000 and $10,000. These will be available to SMEs that have had their turnover significantly affected by the lockdown. Payroll tax deferrals will also be made available to all businesses, and Dine and Discover vouchers will be valid until the end of August.
Unfortunately, there has yet to be any small business support announced by Queensland, despite dire economic predictions for many industries
So how do these grants work?
The amount of funding that a business receives will depend on how much was lost due to the stay-at-home orders. As well as SMEs, sole traders and not-for-profits are also included in the package. To be eligible, you must have:
- A turnover of more than $75,000, but below the payroll tax threshold of $1,200,000
- Fewer than 20 full-time employees
- An accountant statement that confirms a loss in revenue for the time period compared to the same time in July 2019
Tourism and Hospitality businesses will have their own grant stream, and face slightly different requirements. These are:
- A turnover of more than $75,000 and an annual wages bill of below $10 million
- An accountant statement that confirms a loss in revenue for the time period compared to the same time in July 2019
The amount you are eligible for depends on the amount of revenue you’ve lost due to the lockdown restrictions. The $10,000 grants will be available for businesses that have lost 70 per cent of their revenue. There will also be $7,000 grants for those with a 50 per cent loss, and $5,000 grants for a 30 per cent loss.
Notably, these grants can be used to help with the important things like rent and wages, which other support often restricts. The payments will be made available from July 19th.
Those fearing a lengthy application process can apparently rest easy, as NSW Treasurer Dominic Perrottet says that the funding process has been ‘streamlined’ since backlogs caused issues during Sydney’s northern beaches lockdown earlier this year.
Tax Relief Available & Hospitality Voucher Program Extended.
Payroll tax deferrals will also be made available to all businesses, something which is sure to ease the load for many across the state.
The hotels and clubs sector have also been given targeted tax relief, with the option to defer their June quarter gaming machine tax payments. These are usually due in July.
Finally, the Dine and Discover voucher program will be extended until August 31st. The program provides a cash injection to the struggling hospitality industry by providing government-funded vouchers to consumers. Any NSW residents over 18 can apply for up to $100 worth of vouchers to spend at local hospitality businesses, including takeaway.
We know first-hand how difficult lockdowns can be for small businesses. If you need to talk about anything at all, even if it’s just for emotional support, we’re always here for a chat.
If you’re considering applying for this grant, then you should let us know. Our advisors will help you understand how it will affect the rest of your finances. We’ll also help you make sure that you take proper advantage of the payroll tax deferral.
