The State and Federal Governments have announced greater support for individuals and businesses due to the NSW lockdown.
We have been here before and the team at Silver & Young are investing many hours into this topic. BUT, at the moment these are just announcements and the firm detail and application process is still being finalised. Applications for some business support likely start from 19 July.
We supported you through this last year and we will do the same again!
Here is what we know so far:
- No Claims Available Yet
Register your interest in the support so that you are notified once applications are open - https://www.service.nsw.gov.au/covid-19-business-support-2021
- Available Now
Check eligibility and apply for COVID-19 Disaster Payment. Must be completed by the individual - https://www.servicesaustralia.gov.au/individuals/services/centrelink/covid-19-disaster-payment
WHAT SUPPORT HAS BEEN ANNOUNCED?
COVID-19 Disaster Payment is a weekly support payment delivered through Centrelink for those who can’t attend work and lost income after 7 days of lockdown. The recent announcement boosted the amount of the payment after the lockdown reaches 4 weeks. There have also been other loosening of criteria to allow more individuals to claim.
For Micro Businesses (Turnover $30,000 - $75,000)
Small businesses or sole traders with turnover of $30,000 - $75,000 may be able to apply for a grant of up to $1,500 per fortnight with applications expected to be available from late July 2021. You will need to prove a 30% reduction in turnover.
Small Business Wage Support (Turnover $75,000 - $50m)
Small Businesses with turnover of $75,000 - $50m may be eligible for a wage subsidy of between $1,500 up to a maximum of $10,000 per week from week 4 of a lockdown onwards for businesses that have a 30% reduction in turnover during the lockdown. The amount of the subsidy is calculated as 40% of weekly payroll up to the maximum $10,000 per week. Businesses must maintain their level of staff. We don’t know exactly how this will be measured or submitted yet – No action can be taken yet
Small Business Grant (Businesses with annual wages up to $10m)
Small businesses with annual wages of up to $10m may be eligible for one-off lump sum grant of $7,500 - $15,000. This is higher than previously announced grants. The amount of the grant depends on your decline in turnover. $7,500 with a 30% decline, $10,500 with a 50% decline or $15,000 with a 70% decline. Applications expected to be available from 19 July. We don’t know exactly how this will be measured or submitted yet – No action can be taken yet
- Payroll tax waivers of 25% for businesses with annual wages of $1.2m - $10m and have experience a decline in turnover of 30% or more. Deferrals and interest free payment plans will also be available.
- We understand the ATO will be supportive in their chasing of debts and setting up payment plans.
FOCUS ON MENTAL HEALTH
We know that most people do not come to their accountant for health advice. But these can be difficult times with the negative vibe in the air, mixed with the financial uncertainty, this can cause strains on the mental health of the business owner, employees and loved ones.
So, we ask all our clients and friends – please remember we live in one of the greatest countries on earth and the government showed us last time they will support businesses. The state of your mental health is going to be key for your business to get through any difficulties. So please do what you can to keep calm and look after your wellbeing. Remember there is an enormous amount of support available and early intervention is key to a speedy recovery. The link below may help.