Institute of Certified Bookkeepers

NSW COVID-19 Support Payments

In response to the latest announcement of a major economic support package aimed at supporting businesses and individuals through the current COVID-19 lockdown in NSW, ICB report on the latest information as of the 14th of July, 2021 to assist our members in gaining clarity on the latest in news and information regarding the support packages.

Individuals

Disaster Payments Increase from Week 4

“You don’t have to have lost your job; you don’t have to have left your employer. It doesn’t matter who your employer is,” Morrison said. “If you have lost those hours, you can access that payment right now.”
  • Applies to those individuals in the Lockdown area or affected by the Lockdown.
  • If the individual has lost 20 hours or more work: was $500 now $600 a week.
  • If the individual has lost less than 20 hours: was $325, now $375 a week.
  • As from Week 4 going forward if the individual is in the system there is no need to reapply. (As long as the health orders are in place)

As of 18th July all residents of NSW are eligible

Individuals may be eligible if all the following apply:

  • You cannot attend work and have lost income on or after day 8 (second week of Lockdown) of COVID-19 restrictions.
  • You do not have access to appropriate paid leave entitlements through your employer. Note: you do not have to use annual leave or sick leave. Access to pandemic leave is appropriate paid leave.
  • You are not getting an income support payment, a state or territory pandemic payment, Pandemic Leave Disaster Payment, or state small business payment for the same period.
  • People will be eligible for the payment, including where they are still working, provided they have lost more than 8 hours or a full day of work.
  • From the third week of lockdown, applicants will no longer be required to declare they have less than $10,000 in liquid assets to be eligible for the payment.
  • The Commonwealth will make the payment a recurring payment for approved recipients for as long as the Commonwealth declared hotspot and lockdown restrictions remain in place.
  • Recipients do not need to re-claim for each seven-day period of a lockdown.

Small Business

Grants (as previously announced)– for the first 3 weeks

  • For businesses with turnover more than $75k and less than $10m
  • Eligible if decline in turnover (definition: total normal income, excluding GST – what goes on the Profit and Loss as a businesses income).
    • 30% or more: $7,500
    • 50% or more: $10,500
    • 70% or more: $15,000
  • The process will be handles by Services NSW and we are still awaiting details.
  • Business will need a letter from BAS Agents or Accountants confirming turnover.
  • Applications open 19th July 2021.

Cashflow Boost – Applies to Business After Week 4

  • There will be a payroll subsidy after week 4 of lockdown.
  • Between $1,500 and $10,000 a week.
    • Based on 40% of NSW payroll payments
  • Applies to Businesses with turnover up to $50m, but more than $75k.
  • You will need to indicate a 30% decline in turnover. We need to wait for more detail on how that decline in turnover will be calculated but it has been indicated:
    • It will need to be calculated over a two-week period in 2021 compared to two-week period in 2019 (pre COVID-19). Note: the calculation will not be using 2020 as a comparison period.
  • To be eligible to for this subsidy a business must maintain full-time, part time and long-term casuals staffing levels as of 13th July 2021.

The process will be handled by Services NSW.

  • Register your interest now and join their mailing list so once the system is up and running you will receive notification – Service.nsw.gov.au

Sole Traders

  • There will be a $1000 a week support payment

The process will be through Services NSW, and we are awaiting details of application access.

Micro Businesses

  • Turnover between $30k & $75k.
  • Will be eligible for $1500 per fortnight from week 1 of the Lockdown.
  • If 30% reduction in turnover.

The process will be through Services NSW, and we are awaiting details of application access.

Other Support

State Charges/Fees

Reductions & Deferrals

  • Payroll tax liabilities deferred for 2 months.
  • Payroll tax waiver of 25% (wages up to $10m) if 30% turnover reduction.
  • Land Tax Rebate if landlord supports tenants (both commercial and residential)
    • Up to 100% of 2021 liability equal to value of rent reductions.

No evictions

Business

  • Landlords cannot evict tenants due to lockdown.
  • See Small Business Commissioner mediation for disputes.

Residential

  • 60-day moratorium on evictions.
  • Workers who have 25% loss of income.

Bank Support

The Banks are indicating further support.

ABA Announces:

  • National support package
  • All small business (lending <$3m and turnover <$5m)
  • Impacted by COVID

Types of support

  • 3-month repayment deferrals.
  • Loan terms extended.

Income Tax

  • NSW Small business grants and small business payments will be tax exempt. Not accessible for income tax.
  • ATO are offering payment plans and looking at no interest for this period of lockdown. Will take the circumstances of the business int account.
  • If on PAYG instalments business should be able to vary PAYG Instalments.

Special Support

  • Arts sector $75m.
  • Accommodation sector $26m.
  • Expanded mental health services.

What to do

  • Register with Services NSW – expression of interest
  • Turnover – wait for the details on what they are calling turnover
    • A two-week period within 26th June 2021 to 17th July 2021 compared to 2019
    • A letter signed by BAS Agent or Accountant (await the template)
  • Headcount 13th July 2021 – more details to follow.

Note: Do not rearrange circumstances to make a business eligible. The government are seeking to support business quickly and efficiently. As Bookkeepers, do not support fraud. If it is proven people are changing circumstances to fit in with eligibility there will be less support and more compliance in the future.

Our advice is to not compare these packages to any form of JobKeeper or Cashflow Boost but to see them as a new support package and understand them as per guidelines.

For Bookkeepers, just be mindful of who is administering the support (Federal or State) as then you will have a clear indication of where to access information. Typically, individual support is provided by the Federal Government via Services Australia and business support is largely supported by the State Government networks.

For all NSW members, keep an eye on The Small Business Commissioner NSW Website for the latest information and updates.

ICB Webinar

ICB webinar

Business Information Sheet

ICB – NSW COVID-19 Support Payments BIS

Resources

  • Updated: 20th July 2021
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