The NSW Government has announced a $1B support package for NSW businesses affected by Omicron. Here is what we know:
Small Business Support Program (SBSP)
The NSW Small Business Support Program provides eligible employing businesses with:
A lump sum payment of 20% of weekly payroll
Minimum weekly payment $750
Maximum weekly payment $5,000
Paid for the month of February 2022 only
Eligible non-employing businesses will receive $500 per week (paid as a lump sum of $2,000).
Eligibility
To access the package, businesses must:
Have aggregated annual turnover between $75,000 and $50M (inclusive) for the year ended 30 June 2021; AND
Experienced a decline in turnover of at least 40% due to Public Health Orders or the impact of COVID-19 during January 2022 compared to January 2021 or January 2020; AND
Experienced a decline in turnover of 40% or more from 1 to 14 February 2022 compared to the same fortnight in either 2021 or 2020 (you must use the same comparison year utilised in the decline in turnover test for January); AND
Maintain employee headcount from “the date of the announcement of the scheme” (30 January 2022).
The support package covers only the month of February 2022. Applications for support are expected to open mid-February.
Fees and Charges Rebate Increased and Extended to Rapid Antigen 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 (RATs) purchased by the business to protect employees and clients. The rebate for RATs will be available “by March” and is unlikely to cover RATs purchased prior to the funding coming online to prevent additional pressures on the RATs 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.
Eligibility
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.
Already registered businesses will receive an automatic top up of $1,000 and newly registering businesses will receive a rebate of $3,000. Only one rebate is available for each ABN.
For more information visit Small Business Fees and Charges Rebate.
Commercial Landlord Relief Extended
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.
More information will be available soon at Commercial Landlords Hardship Grant.
The above is initial information only. We will provide more details as soon as they are released by the NSW Government.
In the meantime, please keep your accounting records as up to date as possible, so that when the SBSP opens, we can test for you as quickly as possible.
If you have any questions at all, please do not hesitate to contact your Client Manager.
Comments