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 https://www.service.nsw.gov.au/transaction/2021-covid-19-business-grant.
Applications for this payment will close on 13 September 2021
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 https://www.service.nsw.gov.au/transaction/jobsaver-payment
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 https://www.service.nsw.gov.au/transaction/2021-covid-19-micro-business-grant
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.