Business and consumer Covid-19 “extended lockdown” relief packages


Business and consumer Covid-19 “extended lockdown” relief packages

Additional measures announced 3rd August 2021

With lockdown extended at both federal and state level, governments have extended options for SMEs, with headline measures being the JobSaver payments and the 2021 COVID-19 Business Grant.

We have outlined below a brief summary of these two initiatives, how you qualify and what payments you should be entitled to receive.

2021 Covid-19 Business Grant

This is a one-off grant aimed to provide support for businesses that have experienced reduced demand, or had to close due to public health orders.

To be eligible, businesses must have

  • total Australian annual wages below $10 million, as at 1 July 2020
  • an annual turnover above $75,000
  • experienced a decline in turnover of 30% or more over a minimum 2 week period from 26 June 2021 to 17 July 2021, compared to the same period in 2019

There are 3 different grant amounts available depending on the decline in turnover

  • $7,500 for a decline of 30% or more
  • $10,500 for a decline of 50% or more
  • $15,000 for a decline of 70% or more

More details (including full eligibility criteria) are available, and applications are made via the ServiceNSW website. Start with this link

Applications for this payment will close on 13 September 2021

JobSaver Payment

JobSaver provides cash flow support via fortnightly payments to help maintain employee headcount, measured as at 13 July 2021. Eligible businesses can use JobSaver to cover business costs in addition to salaries and wages, incurred 18 July 2021.

To be eligible for the payments, the business must have

  • had a business turnover between $75,000 and $250 million in the year ended 30 June 2020.
  • experienced a decline in turnover of 30% or more over a minimum 2 week period within the within the Greater Sydney lockdown, compared to the same period in 2019.

Eligible businesses and not-for-profit organisations with employees will receive fortnightly payments backdated to cover costs incurred from week 4 of the Greater Sydney lockdown (from 18 July 2021 onwards).

Payments to employing businesses will be up to 40% of the businesses weekly payroll for work performed in NSW, and will be between $1,500 and $100,000 per week. Non-employing businesses, such as sole traders, may be able to receive a payment of $1,000 per week.

More details (including full eligibility criteria) are available, and applications are made via the ServiceNSW website. Start with this link

Covid-19 Micro Business Grants

In a structure similar to JobSaver payments, the Covid-19 Micro Business Grant is designed to support smaller businesses with annual turnover between $30,000 and $75,000 in the year ended 30 June 2020. The business must also have experienced a decline in turnover of 30% or more from the same period in 2019.

Eligible businesses can receive a payment of $1,500 per fortnight to cover business expenses for the duration of the Greater Sydney lockdown.

More details (including full eligibility criteria) are available, and applications are made via the ServiceNSW website. Start with this link

With Greater Sydney in extended lockdown,  on 13th July Scott Morrison, Gladys Berejiklian and Dominic Perrottet jointly unveiled a model of economic support for Covid-19 outbreaks that we wanted to communicate to you, the detail of which is summarised below.


  • The support packages would be available to any state or territory that experienced an extended lockdown
  • The support package will cost taxpayers about $1.5bn a fortnight on direct payments to help businesses and workers endure extended lockdowns – both currently in greater Sydney but also to apply to future lockdowns – with premiers able to activate as a “last resort”.
  • The support package aims to cushion the blow of lost income and earnings and underwrite the bounce-back once restrictions are lifted.
  • The new relief measures include a commitment to pay up to $600 a week to workers who have lost income and as much as $10,000 a week to businesses that have suffered a fall in earnings of 30% or more.

Small Business Support – How it works:

  • Business and not-for-profits with a turnover between $75,000 up to $50m, that can show a 30% drop in revenue will received payments ranging from $1,500 to $10,000 a week based on payroll levels and as long as they don’t sack staff.
  • The rate of payment will be fixed at 40% of the enterprise’s payroll payments, at a minimum of $1,500 and a maximum of $10,000/ week.
  • The fall in turnover is determined by comparing a minimum of 2 weeks in June/July 21 lockdown, to a minimum 2 week period during June/ July 2019.
  • Sole traders will receive $1,000 a week if they are hit by the restrictions.
  • Additionally the NSW Government expanded the grants program with grants between $7,500 and $15,000 available to eligible businesses with annual Australian wages up to $10 million and a micro grant of $1,500/ fortnight for businesses with turnover between $30,000 and $75,000.

COVID 19 Disaster Payment – How it works:

  • For individuals living in a declared hotspot, Covid relief payment for workers will be increased, with individuals across NSW who lose 20 hours or more a week receiving a $600 weekly payment, while those who lose between 8 and 20 hours a week will receive $375 a week.
  • They can keep working in that business, under those arrangements,

Tax relief- How it works:

  • Payroll tax waivers of 25% for employers with wages bills of 1.2M – $10M – that can show a 30% hit to earnings.
  • NSW small business grants will be tax exempt
  • Relief will be offered to individual taxpayers facing hardship.

How to access:


  • There is encouragement measures to encourage rental relief from landlords with NSW Treasurer Dominic Perrottet saying, ”We will be mandating that there’ll be no lockouts or evictions during this period of time and any rent reduction from landlords to their tenants in that space, we will provide a rebate or discount in relation to land tax payable from that landlord to the state.”
  • Land Tax relief up to 100% of the land tax liability available to residential and commercial landlords that pay land tax and reduce rents for their tenants.
  • For residential landlords that reduce their tenant’s rent and not liable to land tax, a grant of up to $1,500 may be available on application if qualifying criteria are met.
  • Residential tenants who have lost 25% or more of their income due to COVID-19 will have a moratorium on eviction for 60 days.
  • Specific criteria for eligibility and details of how this measure will apply are expected to be released shortly, with NSW legislation to follow.
  • Morrison unveiled a $17m mental health package for NSW, including further funding for charities such as Lifeline, headspace, Kids Helpline and the Butterfly Foundation.

Bank assistance:

  • The Australian Banking Association has announced a national support package for business and home owners, including loan deferrals and fee waivers, as COVID-19 lockdowns continue to cause financial hardship for many Australians.
  • The national support package includes business loan deferrals of up to three months, with loan terms extended accordingly, offered to all small business customers with less than $3 million debt and annual turnovers under $5 million.
  • These customers will also be eligible for merchant terminal fee refunds of up to three months and fee waivers on cash deposit and farm management deposit accounts for up to three months.
  • Mortgage holders will also be eligible to apply for loan deferrals on a month-by-month basis, which is available to both individual and business customers.

Anthony Landahl | Managing Director Equilibria Finance

This is for general information purposes only and does not constitute advice. With all of these options there are a number of considerations outside the scope of what is covered in this article that you need to understand to ensure your personal circumstances are taken into consideration.

Equilibria Finance is a mortgage broking practice specialising in delivering residential and commercial mortgage and business and asset finance solutions to the clients of financial advice and accounting practices.

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