COVID-19 Additional Economic Support Measures
Written on the 11 September 2021
Further Economic Assistance for Struggling Individuals and Businesses
With 10-weeks of lockdown taking place, many individuals and businesses have been tremendously affected by these lockdown restrictions.
On 2 September 2021, the government announced that there will be further economic assistance for struggling individuals and businesses. The government has added an additional $3.9 billion in funding (including $1.5 billion from the Commonwealth) for its COVID-19 economic support package.
How Will the Additional Funding Be Allocated?
The additional funding will be allocated to extend the JobSaver program, Micro-business Grant, rent relief programs, and payroll tax reductions.
The first funding allocation will be for the JobSaver program extension, which is effective from 28 August 2021. The following shows the eligibility criteria for businesses:
- Businesses (with a turnover between $75,000 - $250 million) who experience at least 30% of turnover decline will be eligible to receive payments up to 40% of their pre-COVID weekly NSW payroll.
- Hospitality, tourism, and recreation businesses (with a turnover between $250 million - $1 billion) who experience a constant decline will be eligible to receive 40% of their pre-COVID weekly NSW payroll (up to $500,000 per week).
- Social support and animal welfare Non-for-Profit Organisations (with a turnover between $75,000 - $250 million) who experience at least 15% of turnover decline will be eligible to receive payments up to 40% of their pre-COVID weekly NSW payroll.
The second funding allocation will be for the Micro-business Grant program, which is effective from 28 August 2021. The eligibility criteria are listed below:
- Businesses (with a turnover between $30,000 - $75,000) who experience at least 30% of turnover decline will be eligible to receive a $1,500 payment.
The third funding allocation will be for the rent relief programs, including support for the commercial, retail, and residential landlords.
- Retail and commercial landlords will be eligible to receive up to $3,000 of grant if: (1) Landlords have not claimed land tax relief, and (2) Landlords have provided rental waivers to their COVID-19 impacted tenants.
- Residential landlords will be eligible to apply for land tax relief or receive payment of $1,500 if they reduce the rent for COVID-19 impacted tenants by at least $4,500.
A few weeks ago, the government increased financial support for landlords and tenants with their Residential Tenancy Support Package; in which, we have discussed that matter on our blog website. Therefore, further information regarding the Residential Tenancy Support Package is provided in the link below:
Last but not least, the funding allocation will be for payroll tax waivers and deferrals. The eligibility criteria will be discussed below:
- Businesses (with payrolls less than $10 million) will be eligible for a 25% - 50% reduction in their 2021-2022 payroll tax.
- Businesses can defer their payroll tax payments from July 2021 - December 2021 until 14 January 2022, with 12 months of interest-free repayment.
A new hardship panel will review businesses that don’t qualify for the grants on a case-by-case basis. The panel was made to support and tailor financial assistance for businesses that are affected by the lockdown restrictions. Mr. Tudehope, the Minister of Finance, said, “Businesses are experiencing one of the toughest periods right now, and as restrictions continue, we've heard loud and clear that businesses across the state need this ongoing support and more to get them through to the other side of this.”
With an additional $3.9 billion in funding, the NSW government has provided financial support assistance to a total of more than $11 billion. The NSW Treasurer, Dominic Perrottet said that, “We know business and communities are doing it tough and this ongoing support will not only help get them through the depths of the pandemic but will also provide them with a springboard to bounce back once restrictions ease."
- NSW Government