As we write this, it is a month since stay-at-home restrictions were placed on Greater Sydney, impacting businesses far and wide, and further compacted by restricted freedom of movement throughout the school holidays. What a month! And the reality is harsh for our Central West clients with the virus now on our doorstep.
Thankfully there is support available, largely designed to improve cash flow and as a stop-gap until the commencement of the JobSaver scheme. There have already been some changes and updates, and we are still seeking clarification around some criteria, however the following should help you get started.
There are three tiers of funding ($7,500, $10,500 and $15,000) and two streams based on industry and location. The decline in turnover determines which tier of funding can be sought, however some industries in some locations will be able to apply for funding with less supportive documentation. Further, eligible businesses must have all the following:
- ABN and operating in New South Wales at 1 June 2021;
- Total annual Australian wages of $10 million or less at 1 July 2020;
- Aggregated annual turnover between $75,000 and $50 million for the year ended 30 June 2020;
- Business costs for which there is no other government support available;
- Must maintain their headcount as at 13 July 2021 for the period for which funding is received under this scheme and the JobSaver scheme.
Funding tiers:
- Tier One: Businesses who have experienced a decline in turnover of 30% or more will be eligible for a grant of $7,500;
- Tier Two: Businesses who have experienced a decline in turnover of 50% or more will be eligible for a grant of $10,500;
- Tier Three: Businesses who have experienced a decline in turnover of 70% or more will be eligible for a grant of $15,000.
The decline in turnover needs to have been experienced over a minimum 2-week period from 26 June 2021 to 17 July 2021 compared to the same period in 2019. There is an exception for businesses along the NSW and Victorian border, with their 2-week period to fall between 27 May 2021 and 17 July 2021.
The application process requires the following:
-
- A MyServiceNSW account;
- Proof of identity;
- ABN or ACN;
- Bank details;
- A tax return or Notice of Assessment;
- Details of your accountant, registered tax agent or registered BAS agent.
- A supportive letter from your accountant is also required by any business applying for Tier Three ($15,000) and businesses not on the ‘highly impacted industries list’.
- You will also need to declare your headcount as at 13 July 2021, and declare that you will maintain that employee headcount.
Businesses on the ‘highly impacted industries list’, if only applying for Tier One or Tier Two funding will not need the support letter from their accountant. This list is made up of a large number of ANZSIC codes in industries most affected by the restrictions. Note that the list is much smaller outside the lockdown zones of Greater Sydney region. Get in touch, or you can access the list at the following link:
https://www.service.nsw.gov.au/2021-covid-19-business-grant-guidelines
Alternative circumstances will be considered. However, there is very little information regarding how these will be applied. At this point, the directive is to contact Service NSW directly (phone 13 77 88). Presently, we are waiting to confirm details for specific client cases. Such examples include:
- Businesses operating in NSW but with an ABN registered elsewhere;
- New businesses that were not operating for the full year to June 2020;
- Businesses whose turnover in June/July 2019 was not representative of ‘usual’ turnover;
- Businesses that do not submit BAS;
- Businesses operating under Trust structures who may need to provide additional information.
What to do first?
If you believe your business has been impacted, please contact us. We are happy to assist with calculating your decline in turnover. Obviously, this will rely on you having up-to-date data, so please attempt to have all income transactions reconciled or documented to 17 July! We can also help with applications, however this will need to happen via your MyServiceNSW account, so please have all details at hand.
For more information, please give our office a call.