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NSW Extends Support For Businesses As COVID-19 Restrictions Continues

To assist the businesses and individuals going through a tough time in this pandemic, the government of New South Wales has extended its support to the community by announcing an additional $3.9 billion in funding, including $1.5 billion from the Commonwealth, as the part of its COVID-19 economic support package.

The decision comes as the lockdown reaches the end of week 10, with no end in sight for coronavirus hotspot regions. This extended funding will ensure the success of the JobSaver program and Micro-business Grant by continuing the incentives for rent relief.

Not only this, the local businesses will be provided additional relief with further reductions in the payroll tax. All eligible businesses will be allowed to defer their payroll tax payments, due from July 2021 through to December 2021, until 14 January 2022 with 12-month interest-free repayment plans.

Extension of Micro-business Grant

Starting from 28 August 2021, all eligible businesses with a turnover of $30,000 to $75,000 that are experiencing a minimum 30% decline in turnover will be eligible for a fortnightly payment of $1,500.

Extension of JobSaver Program

From 28 August 2021, eligible businesses with an annual turnover between $75,000 to $250 million that are currently experiencing a minimum 30% decline in growth will be eligible for payments of up to 40% of their pre-COVID weekly NSW payroll.

Eligible businesses in the hospitality, tourism, and recreation sectors with an annual turnover of $250 million to $1 billion that are currently experiencing a decline in turnover will receive payments of 40% of their pre-COVID weekly NSW payroll.

Eligible Not-for-Profit (NFP) organisations with a turnover between $75,000 to $250 million that are currently experiencing a minimum decline of 15% in turnover will be eligible for payments of up to 40% of their pre-COVID weekly NSW payroll.

Extension of Payroll Tax Deferrals And Waivers

Businesses with a payroll of $10 million or less that are eligible for a 2021 COVID-19 Business Grant or JobSaver will be granted a 50% waiver in their 2021-22 payroll tax, up from 25%. Also, the payments for payroll tax will be deferred from July 2021 through to December 2021, and 12-month interest-free repayment plans will be available.

The New South Wales Minister for Finance and Small Business, Mr. Tudehope said, “Businesses are experiencing one of the toughest periods right now and as restrictions continue, we know that businesses across the state need this ongoing support and more to get through to the other side.”

To help tackle this financial crisis for NSW businesses, we continue to tailor our financial assistance program to meet the needs of business owners and NFPs across NSW. Our government is working around the clock to process applications and get money into accounts as quickly as possible.

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KPG Taxation

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