The NSW Government has announced a $1bn support package for struggling NSW small businesses.
Acknowledging the difficulty that businesses have faced as a result of COVID-19 over January and February 2022, NSW have announced a package of support measures.
Eligible businesses will be able to access these support payments from mid-February.
Small Business Support Package
The NSW Small Business Support package provides eligible employing businesses with a lump sum payment of 20% of weekly payroll, up to a maximum of $5,000 per week for the month of February 2022. The minimum weekly payment for employers is $750 per week.
Eligible non-employing businesses will receive $500 per week (paid as a lump sum of $2,000).
To access the package, businesses must:
- Have an aggregated annual turnover between $75,000 and $50 million for the year ended 30 June 2021; and
- Experienced a decline in turnover of at least 40% due to the impact of COVID-19 during the month of January 2022 compared to January 2021 or January 2020; and
- Experienced a decline in turnover of 40% or more for 1 to 14 February 2022 compared to the same fortnight in either 2021 or 2020 (you must use the same comparison year used in the decline in turnover test for January); and
- Maintain their employee headcount from the date of the announcement of the scheme (i.e. 30 January).
The support package only covers the month of February 2022. Applications for support are expected to open mid-February via the Service NSW website.
Fees and charges rebate increased and extended to RAT tests
The NSW small business fees and charges rebate has been increased from $2,000 to $3,000. In addition, the rebate has been extended to cover up to 50% of the cost of Rapid Antigen Tests (RAT) purchased by the business to protect staff and clients. The rebate for RAT tests will be available “by March” and is unlikely to cover RAT tests purchased prior to the funding coming online to prevent additional pressures on the RAT test supply chain.
The rebate is not a cash payment but a digital credit that businesses can draw down on to offset the cost of eligible NSW and local government fees and charges.
The fees and charges rebate is available to sole traders, small business, and not-for profits that have:
- Total Australian wages below the NSW Government 2020-21 payroll tax threshold ($1.2 million)
- An Australian Business Number (ABN) registered in NSW and/or have business premises physically located and operating in NSW.
You can learn more about the fees and charges rebate here: https://www.eclipseaccounting.com.au/fees-and-charges-rebate/
Commercial landlord relief
The protections under the Retail and Other Commercial Leases (COVID-19) Regulation 2021 for small retail and commercial tenants will be extended for an additional two months, until 13 March 2022. This regulation prohibits certain actions by landlords (such as lock out or eviction) unless they have first renegotiated rent with eligible tenants and attempted mediation.
The grant provides up to $3,000 per month (GST inclusive), per property, for eligible landlords who have provided rental waivers to affected tenants.
Rent waived must comprise at least half of any rental reduction provided. The remaining portion may be a rental deferral. The grant does not apply to rent deferrals.
Grants are paid as a lump sum amount for the rent waived.
How to contact us
We’re available to assist you with these support measures or to discuss any queries or concerns you may have. Please contact the team at: https://www.eclipseaccounting.com.au/contact/
02 9531 0922