Further financial support for NSW businesses

The latest COVID-19 financial support package was announced on 13 July 2021. While full details of all the measures are not yet available here are the key highlights:

New business support payment – Cash flow boost Entities with an annual turnover between $75,000 and $50 million who can demonstrate a 30% decline in turnover will receive payments of between $1,500 and $10,000 per week based on the level of their payroll. To be eligible entities will be required to maintain their full time, part time and long term casual staffing level as of 13 July 2021.  Businesses can register their interest from 14 July via Service NSW. 
COVID-19 business grants program expanded and grants increased to $15,000 For businesses impacted by the Greater Sydney COVID-19 restrictions grants of between $7,500 to $15,000 are available for eligible businesses with annual wages up to $10 million.  The amount of the grant will depend on the decline in turnover experienced during the restrictions:
 

• $15,000 for a decline of 70% or more
• $10,500 for a decline between 50 and 70%
• $7,500 for a decline of between 30 and 50%

Businesses and not-for-profit organizations can apply for these grants from 19 July 2021. Micro business grant of $1,500 per fortnight  A new grant program will be available for micro businesses with turnover between $30,000 and $75,000. The businesses will be eligible for a $1,500 grant per fortnight of restrictions. Full details are yet to be announced but eligible businesses should be able to apply for the grants from late July. 

Residential landlord grants  Grants of up to $1,500 or land tax reductions for residential landlords who decrease rent for impacted tenants. The land tax relief will be equal to the value of rent reductions provided by landlords to financially distressed tenants, up to 100% of the 2021 land tax year liability.  This financial support for landlords is alongside a targeted eviction moratorium – a 60 day freeze (until 11 September 2021) on evictions of tenants who cannot pay their rent in full because of the recent outbreak.
Commercial landlords  Commercial and retail landlords will be eligible for land tax relief equal to the value of rent reductions given to financially distressed tenants. The maximum relief will be 100% of the 2021 land tax year liability. Also there can be no recovery of security bonds, or lockouts or evictions of impacted retail and commercial tenants prior to a mediation process.  An extension to the disaster recovery payments for individuals for areas outside the Commonwealth declared hotspots. 

From week four the payment increases to:

• $600 per week where a person has lost 20 hours or more per week; or
• $375 per week where a person has lost between 8 and 20 hours of work per week.

For assistance in determining your eligibility for any of the above measures or for help in making your application please speak to your Prosperity contact.