What lockdown support is available to business?

If your business has been adversely impacted by the recent lockdown in NSW, support is available but there are limitations. 

The NSW Government has announced new grants of up to $10,000 for businesses adversely impacted by the recent COVID-19 lockdowns. Eligibility for the grant is streamed into general business, and hospitality and tourism. The full details of the grant and the eligibility criteria have not been released as yet but here is what we know so far:

You need to prove a decline in turnover

The value of the grant is determined by the impact of the lockdown on your turnover. Your business will need to prove a decline in turnover across a minimum 2 week period after the commencement of the major restrictions.

Decline in turnoverGrant

For some clients, particularly those who have been unable to trade at all during lockdown, proving the decline in turnover should be reasonably simple. For others, we will need to work with you closely once the parameters for the decline in turnover test are known, to determine if you can access the grant.

Small business COVID-19 support grant

The grant is limited to businesses (including sole traders) with:

  • A NSW registered ABN or able to demonstrate they are physically located and primarily operating in NSW; and
  • Turnover of more than $75,000 pa; but
  • Below the NSW Government 2020-21 payroll tax threshold of $1.2m as at 1 July 2020; with
  • Fewer than 20 full time equivalent employees

Hospitality & Tourism COVID-19 Support grant

The grant is limited to tourism or hospitality businesses with:

  • A NSW registered ABN or able to demonstrate they are physically located and primarily operating in NSW; and
  • Turnover of more than $75,000 pa; and
  • An annual Australian wages bill below $10m as at 1 July 2020.

Extension of Dine & Discover to takeaway

Dine & Discover vouchers can now be used for takeaway from eligible and registered Dine businesses during the restriction period but you will need to deliver to the customer’s home or have them pick up the order and check in with a QR code – vouchers cannot be redeemed for takeaway using third party delivery platforms.

The expiry of Dine & Discover vouchers has also been extended until 31 August 2021.

Payroll, gaming machine tax deferral option

You can apply to defer:

  • Payroll tax payments due in July 2021, and
  • Hotel June quarter gaming machine tax

For those that apply to defer, State Revenue will provide a repayment program on a case-by-case basis.

Where and how to apply

The full eligibility details are not available as yet and applications have not opened for the grants.

When applications do open, it will be through the Services NSW website.

The material and contents provided in this publication are informative in nature only.  It is not intended to be advice and you should not act specifically on the basis of this information alone.  If expert assistance is required, professional advice should be obtained.

Accounting Australia

Celina Grech is a Chartered Accountant and the Firm Principal of Calculated Consulting, who specialise in bookkeeping and accounting services for emerging and established small businesses.