Application for NSW COVID-19 Grants Open

Peter Haigh

The NSW Public Health Orders have created significant challenges for many businesses across the state that have either been forced to close or have experienced a substantial decline in demand. The 2021 COVID-19 Business Grant (“the Grant”) will provide short-term cash flow support for affected businesses until the new JobSaver scheme commences.

Key Points

Applications for the Grant opens on 19 July 2021 and will close at 11:59 pm on 13 September 2021.
Service NSW will deliver the Grant on behalf of the NSW Government. You can apply here. We note that at the time of writing this article there is a significant load on the Service NSW IT infrastructure, so you may need to keep trying.
Businesses that received previous COVID-19 small business grants are not excluded from applying.
Non-employing businesses (sole traders and partnerships) are not eligible to apply if the persons associated with the business have applied for, or are receiving the Commonwealth COVID-19 Disaster Payment. Where this payment has not been applied for, non-employing businesses that meet the eligibility criteria below can apply.

Available Funding

One-off funding will be provided in one of three tiers for eligible businesses (including non-employing businesses not in receipt of the Commonwealth COVID-19 Disaster Payment), as follows:

Tier One: $7,500 for businesses that have experienced a decline in turnover of 30% or more.
Tier Two: $10,500 for businesses that have experienced a decline in turnover of 50% or more.
Tier Three: $15,000 for businesses that have experienced a decline in turnover of 70% or more.

Tier 1 Eligibility Criteria

Eligible Tier 1 businesses will need to satisfy the following:

The business has an ABN and was operating in NSW as at 1 June 2021.
Total annual Australian wages of $10 million or less as at 1 July 2020.
Aggregated annual turnover between $75,000 and $50 million for the year ended 30 June 2020.
Incurring business costs for which there is no other government support available.
Have experienced a decline in turnover of 30% or more over a minimum 2-week period from 26 June 2021 to 17 July 2021, when compared with the same period in June or July 2019.
Maintains their employee headcount as at 13 July 2021 for the period for which the business is receiving payments under this Grant and the JobSaver scheme.

Tier 2 Eligibility Criteria

Eligible Tier 2 businesses will need to satisfy the following:

The eligibility criteria for Tier 1 businesses, with the exception that the decline in turnover for the same test period is 50% or more.

Tier 3 Eligibility Criteria

Eligible Tier 3 businesses will need to satisfy the following:

The eligibility criteria for Tier 1 businesses, with the exception that the decline in turnover for the same test period is 70% or more.

Businesses on the NSW/Victorian border which were impacted by the stay at home orders that commenced on 27 May 2021 are able to use 27 May 2021 to 17 July 2021 as their test period.

Supporting Evidence

Highly Impacted Industries

Eligible businesses that are on the “highly impacted industries list” are required to:

Declare they experienced the required decline in turnover over a minimum 2-week period during the relevant test period.
Declare they have eligible expenses for which no other government support is available.
Declare their employee headcount at 13 July 2021.
Declare they will maintain their employee headcount as at 13 July 2021 for the period covered under the Grant and the JobSaver scheme.
Provide details of their qualified accountant, registered tax agent or registered BAS agent for possible compliance checking.
Submit an Australian Income Tax Return (or Notice of Assessment) to demonstrate the turnover threshold has been met.

Businesses claiming the Tier 3 Grant will receive $10,500 initially and will then be required to submit additional evidence for verification in order to receive the $4,500 balance.

Other Industries

Businesses not listed on the “highly impacted industries list” are required to:

Submit evidence that they experienced the required decline in turnover during the relevant test period.
Declare they have eligible expenses for which no other government support is available.
Declare their employee headcount at 13 July 2021.
Declare they will maintain their employee headcount as at 13 July 2021 for the period covered under the Grant and the JobSaver scheme.
Submit an Australian Income Tax Return (or Notice of Assessment) to demonstrate the turnover threshold has been met.

Where evidence is required, it will be necessary to obtain a letter from a qualified accountant, registered tax agent or registered BAS agent to verify the required eligibility criteria has been satisfied.

Businesses that cannot demonstrate they have satisfied the turnover test (e.g. because they are a new business) or where their turnover in June / July 2019 is not representative of their usual turnover (e.g. due to drought or flood) should contact Service NSW to discuss their eligibility.

Key Definitions

Aggregated annual turnover: the Australian Taxation Office income assessment concept will be applied when assessing whether an applicant had national aggregated annual turnover of between $75,000 and $50 million (inclusive).

Decline in turnover: the Australian Taxation Office Goods and Services Tax (GST) concept will be applied when assessing whether an applicant experienced a 30% or more decline in national turnover.

Employee headcount means the number of persons who are employed in New South Wales and who are permanent (full-time or part-time), or casual staff that have been employed by the business for more than 12 months.

Highly impacted industries means the industries in the list in Attachment A.

If you have been impacted by the NSW Public Health Orders and require assistance applying for the grant, please contact your adviser.