NSW Government Comprehensive Economic Support Package
In its aim to protect businesses, save and keep jobs through the lockdown, the NSW government has committed $5.1B worth of comprehensive economic support package, including more than $1B from the Commonwealth as part of a business and employee support program.
What are the support available for my business?
Eligible businesses with annual wages below $10M can claim grants between $7,500 and$15,000.
40% cash boost of weekly payroll for businesses with an annual turnover of between$75,000 and $50M and experienced a 30% reduction in turnover. Payment amount is between $1,500 and $10,000 per week from week 4 onwards, provided staffing levels are maintained.
$1500 fortnightly grants for micro-businesses with a turnover of between $30,000 and $75,000 which can demonstrate a 30% reduction in turnover where the business is the primary source of income
Businesses with Australian wages between $1.2M and $10M and can demonstrate a 30% decline in turnover will benefit from 25% payroll tax waivers.
Increase in the payment amount for stood down workers from$500 to $600 per week for those who lost more than 20 hours, and to $375 for those who lost between 8 and 20 hours, and for it to be available to workers outside of Sydney lockdown areas.
Residential tenants will have greater protection with a targeted eviction moratorium
Depending on their circumstances, residential landlords who decrease rent for impacted tenants can apply for a grant of up to $1,500 or land tax reductions.
Commercial and retail landlords will need to attempt mediation before recovering a security bond, or locking out or evicting a tenant impacted by the Public Health Order.
Commercial, retail and residential landlords liable for land tax will be eligible for a land tax concession where they reduce the rent of their tenant.
Key components of 2021 COVID-19 package
- An extension to the previously announced business grants program. This means eligible businesses with Australian wages below $10 million can claim grants between $7,500 and $15,000 to cover the first three-weeks of restrictions, and takes the potential size of the program to $2.1 billion;
- Up to $2 billion committed to the scheme to provide cashflow support to businesses to help them retain staff, to be delivered together with the Commonwealth.
- Payroll tax waivers of 25 per cent for businesses with Australian wages of between $1.2 million and $10 million that have experienced a 30 per cent decline in turnover, as well as payroll tax deferrals and interest free repayment plans;
- A new grants program for micro businesses with a turnover of between $30,000 and $75,000 which experience a decline in turnover of 30 per cent. The businesses will be eligible for a $1500 payment per fortnight of restrictions.
- A capped grant of up to $1,500 for residential landlords who are not liable to pay land tax who reduce rent for tenants estimated at $210 million;
- Land tax relief equal to the value of rent reductions provided by commercial, retail and residential landlords to financially distressed tenants, up to 100 per cent of the 2021 land tax year liability;
- Introduction of legislative amendments to ensure a short-term eviction moratorium for rental arrears where a residential tenant suffers loss of income of 25 per cent due to COVID-19 and meets a range of criteria.
- No recovery of security bonds, or lockouts or evictions of impacted retail and commercial tenants prior to mediation;
- Deferral of gaming tax assessments for clubs until 21 December 2021 and hotels until 21 January 2021;
- A $75 million support package for the performing arts sector to be administered by Create NSW;
- A support package for the accommodation sector worth $26 million;
- $12 million in additional funding for temporary accommodation for those at risk of or experiencing homelessness, and
- $5.1 million in NSW funding to support mental health
Visit NSW Government site for more information on the comprehensive economic support package. You may also message us at firstname.lastname@example.org if you have questions or concerns.