There is now more assistance for NSW small business owners. The State government has announced $10,000 grants for eligible businesses to help with cash-flow. The grant must be used for unavoidable business costs such as utilities, overheads, legal costs and financial advice.
More help for the excluded NSW small business owners. It is expected to provide rapid relief, especially for those small businesses not eligible for payroll tax waivers and deferrals. In addition to this grant and previously announced payroll tax concessions, there are also other help available including electricity and gas tariff relief.
NSW government has announced a new assistance scheme to help thousands of small businesses in NSW ride out the economic effects of the COVID-19 pandemic. The Small Business Support Fund will receive $750m from the State government to help provide cash flow relief to eligible businesses in the form of grants of up to $10,000.
The model for the Small Business Support Fund is based on the scheme implemented during the bushfires and is expected to provide rapid relief to keep businesses afloat, particularly those not eligible for payroll tax waivers and deferrals.
“These grants will provide a big boost, and we will make the application process easy to ensure small businesses can receive some cash-flow as soon as possible to meet pressing needs.” – NSW Premier Gladys Berejiklian
Eligibility criteria for businesses include:
- having between 1-19 employees and a turnover of more than $75,000;
- payroll below the NSW government 2019-20 payroll tax threshold of $900,000;
- have an ABN as at 1 March 2020, be based in NSW and employ staff as at 1 March 2020;
- be highly impacted by the Public Health Order on restrictions on gathering and movement issued on 30 March 2020;
- use the grant for unavoidable business costs such as utilities, overheads, legal costs and financial advice; and
- provide appropriate documentation on application.
It is expected that eligible businesses will be able to apply for the grant through Service NSW by mid-April 2020. Applications will remain open until 1 June 2020. According to the NSW government, highly impacted industries include:
- retail trade;
- accommodation and food services;
- rental, hiring and real estate services;
- administrative and support services; and
- arts and recreation services.
Besides local cafés, restaurants, corner shops and small accommodation providers, the grant is also expected to apply to gyms according to NSW Treasurer, Dominic Perrottet.
This latest grant follows other assistance measures announced by the NSW government including: payroll tax waivers, deferrals, and other tax deferrals; fund to create jobs in NSW, waiving a range of fees and charges for certain businesses, assistance for the vulnerable, additional funding for the health system, and bringing forward capital works.
The payroll tax measures previously announced has now taken effect, businesses with a payroll of $10m or less in 2019-20 would have received a 25% reduction of annual payroll tax liabilities and a 3-month deferral for payroll tax payments. All other businesses (including those with payrolls of over $10m) have now received a payroll tax payment deferral of up to 6 months.
In addition to the above, the NSW government has also pointed to relief measures and grants provided by other organisations and businesses, including the electricity and gas network relief package. It is aimed at small businesses that are temporarily closed due to the pandemic. Under the support package organised by Energy Networks Australia, eligible businesses may be able to obtain full electricity or gas tariff relief.
Want to apply?
If your small business meets the eligibility criteria and have been substantially impacted by the Coronavirus epidemic, Hunter Partners can help you apply for this grant as well as any other State or Federal economic help during this difficult time. Contact Hunter Partners today to find out more.
Hunter Partners are Accountants, Tax Agents and Financial Planners. We can assist you with all aspect of your accounting, tax and financial planning requirements, call Hunter Partners on (07) 4723-1223.