As hundreds of thousands of SMEs across NSW face the cost of lockdowns and stay-at-home orders, the Commonwealth and NSW Governments have put together a support package. It’s estimated the payments will provide a financial lifeline to around 500,000 entities employing more than 3 million people.
Here’s what’s involved.
COVID-19 Business Support Payments
A new business support payment will be available to entities with an annual turnover between $75,000 and $50 million, which can demonstrate a 30% decline in turnover compared to the equivalent two weeks in 2019.
Eligible entities, which includes not-for-profits, will receive payments of between $1,500 and $10,000 per week. The exact amount is worked out as 40% of the business's NSW payroll payments.
To receive the payment, eligible businesses will be required to maintain their staffing levels of full-time, part-time and long-term casual employees as of 13 July 2021.
For non-employing businesses, such as sole traders, the support payment will be set at a flat $1,000 per week.
Payroll tax waivers
Payroll tax waivers of 25% will be available for businesses with Australian wages of between $1.2 million and $10 million that have experienced a 30% decline in turnover. Payroll tax deferrals and interest-free repayment plans will also be available.
Protection for commercial tenants
Commercial (and retail) landlords will need to attempt mediation where the tenant is impacted adversely by the lockdowns.
Land tax relief will be available equal to the value of rent reductions provided by commercial, retail and residential landlords to financially distressed tenants, up to 100% of the 2021 land tax year liability;
How to apply
Businesses can apply for support payments and other forms of state-based relief from 19 July 2021, via the Service NSW website.
To fast-track your support payments:
Raine & Horne Commercial is here to help
Talk to your local Raine & Horne Commercial team to find out how we can support you through this challenging time.