COVID-19 Disaster Payments
The Commonwealth and New South Wales government have announced a new combined support package that will boost payments for businesses, employees and expand eligibility to regional NSW.
Here are the details of the new business support package announced by Prime Minister Scott Morrison and NSW Premier Gladys Berejiklian.
COVID-19 Disaster Payment – Support for Individuals
Under a new combined support package, the COVID-19 Disaster Payment will be further expanded and increased.
- From week four of a lockdown, the COVID-19 Disaster Payment will increase to $600 if a person has lost 20 or more hours of work a week or $375 if a person has lost between 8 and less than 20 hours of work a week.
- The payment will be a recurring payment for approved recipients as long as the lockdown restrictions remain in place.
- From 18 July 2021, the Disaster Payment will be available to those outside Commonwealth declared hotspots in NSW that meet the criteria for the payment.
This support will be offered to any other state or territory that experiences an extended lockdown.
Small and medium business support payments
A new business support payment will be available to entities with an annual turnover between $75,000 and $50 million who can demonstrate a 30 percent decline in turnover.
- Eligible entities will receive 40% of their NSW payroll payments, at a minimum of $1,500 and a maximum of $10,000 per week.
- Entities will be eligible if their turnover is 30% lower than an equivalent two-week period in 2019.
- Entities will be required to maintain their full time, part time and long-term casual staffing level as of 13 July 2021.
- For non-employing businesses such as sole traders, the payment will be set at $1,000 per week.
- Businesses can register their interest from 14 July 2021 at Service NSW.
The assistance will cease when current lockdown restrictions are eased or when the Commonwealth hotspot declaration is removed.
Additional support - Expansion of the business grant program by NSW Government
The business grants program announced previously by the NSW Government has been expanded!
Key components of the package include:
- 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.
- Payroll tax waivers of 25% for businesses with Australian wages up to $10 million.
- Micro businesses with a turnover of between $30,000 and $75,000 which experience a decline in turnover of 30%, will be eligible for a $1500 payment per fortnight.
- A capped grant of up to $1,500 for residential landlords who are not liable to pay land tax who reduce rent for tenants.
- Land tax relief equal to the value of rent reductions provided by commercial, retail and residential landlords to financially distressed tenants.
- Introduction of a short-term eviction moratorium for rental arrears where a residential tenant suffers loss of income of 25% due to COVID-19.
More information will be available in the coming days.
If you have any questions, please contact your Tax Effective Consultant on 02 9223 4378 today.