The NSW Government, in conjunction with the Australian Federal Government, has announced measures to support households and boost cash flows for businesses in response to the uncertainty brought about by the extended stay-at-home restrictions (lockdowns) in Greater Sydney.
For those that are eligible, claims can be made via an individual’s myGov account, linked to a Centrelink online account. Where both members of a couple have been impacted, they will both be eligible for the payment, but will be required to apply separately. The payment will be recurring so long as the lockdown restrictions remain in place, removing the need to reapply each week of lockdown.
The COVID-19 Disaster Payment is assessable income and the recipient will be required to declare the payment in their tax return.
Individuals and Households
The COVID 19 Disaster Payment is available to individuals living or working in a Commonwealth declared hotspot subject to an extended lockdown.
The payment will be available to you if you live or work in any of the Sydney Local Government Areas that were declared a hotspot from 1 July 2021 (the City of Sydney and areas in the Eastern suburbs). You will be able to apply for the payment from Thursday 15 July 2021.
If you do not live or work in a Commonwealth declared hotspot, but you have been financially impacted by the lockdowns, those in Greater Sydney and the impacted areas of NSW, you will be eligible to apply from Sunday 18 July 2021.
The following amounts of the Payment are based on the level of lost earnings for an individual in a week:
A payment of $600 each week, where the individual has lost 20 hours or more of work a week (up from $500 a week).
A payment of $375 each week, where the individual has lost between 8 and 20 hours per week (up from $325 a week).
In addition to the loss of earnings, the following general criteria must also be met:
Must be an Australian resident or hold an eligible working visa
Individual must be 17 years or older
Not receive an income support payment (such as AUSTUDY, JobSeeker), ABSTUDY Living Allowance, Dad and Partner Pay or Parental Leave Pay
Not receive the Pandemic Leave Disaster Payment, a state or territory pandemic payment or a state small business payment for the same period
Lived in, work from or visited a Commonwealth-declared COVID-19 hotspot
Lived in, work from or visited a location subject to a state or territory restricted movement order
Had paid employment and because the individual was in the COVID-19 hotspot or subject to restricted movement, cannot attend work on or after day 8 of the restrictions
Lost income on or after day 9 and do not have appropriate paid leave entitlements
If claiming for a period prior to the third week of lockdown, individuals must have liquid assets under $10,000. As much of Sydney has already been in lockdown for two weeks, this requirement will generally no longer be relevant.
If you have any questions please do not hesitate to contact us at 8222 6100 or email your advisor at Causbrook & Associates directly.
Support payments for businesses who continue to retain their employees.
For small and medium-sized businesses, including not-for-profits, eligible entities will receive 40% of their NSW payroll payments. This will be at a minimum of $1,500 and a maximum of $10,000 per week.
For non-employing businesses, such as sole traders, the payment is set at $1,000 per week.
The eligibility criteria are as follows:
Eligible businesses must have an annual turnover between $75,000 and $50 million.
Their turnover is 30% lower than an equivalent two-week period in 2019.
Businesses will be required to maintain their full time, part time and long-term casual staffing level as of 13 July 2021.
Applications will be processed through MyServiceNSW commencing from 26 July 2021.
The assistance will cease when the current lockdown restrictions are eased, or the declaration of a hotspot is removed.
NSW Payroll Tax 25% discount
Businesses with Australian wages between $1.2 million and $10 million, which have had a decline in turnover of at least 30% will be entitled to a permanent discount of 25% of their 2021/22 payroll tax liability. Further details on how this will operate will be released by Revenue NSW shortly.
This is in addition to the existing deferral of payment of the July and August 2021 liabilities until 7 October 2021.
NSW government COVID-19 grants
Businesses with annual wages up to $10 million may apply to receive grants between $7,500 and $15,000. While the full eligibility criteria are still being finalised, the amount of the grant received will be based on the level of the decline in turnover suffered as a result of the lockdown restrictions as follows:
$7,500 for a decline of 30% or more
$10,500 for a decline of 50% or more
$15,000 for a decline of 70% or more.
Applications will commence from 19 July 2021.
Micro businesses with an annual turnover between $30,000 and $75,000, which have suffered a decline in turnover of at least 30% as a result of the restrictions, may apply for $1,500 fortnightly payments from late July.
NSW Land Tax relief
Land tax relief is available where a landowner has provided a rent reduction (not a deferral) to a commercial or residential tenant, with the reduction provided between 1 July 2021 and 31 December 2021.
The relief provided is the lesser of the rent reduction provided or 100% of the 2021 land tax liability on the specific property a rent reduction has been granted.
Where the property is leased by a commercial tenant, the relief only applies where the commercial tenant has annual turnover up to $50 million and is eligible to receive one of the COVID-19 NSW government grants or the JobSaver scheme.
The tenant must have suffered financial distress as a result of the restrictions defined as:
A decline in turnover for a commercial tenant of at least 30% compared to a previous comparable period.
For residential tenants, a reduction household income of at least 25%.
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Get in touch with us to set up a consultation or use the contact form on this page to inquire whether our services are right for you.
Any advice contained in this document is general advice only and does not take into consideration the reader’s personal circumstances. Any reference to the reader’s actual circumstances is coincidental. To avoid making a decision not appropriate to you, the content should not be relied upon or act as a substitute for receiving financial advice suitable to your circumstances.