Australia: Eligibility requirements for business grants (New South Wales) (COVID-19)

New South Wales COVID-19 business grant program opened 19 July 2021

New South Wales COVID-19 business grant program opened 19 July 2021

Applications under the New South Wales government’s 2021 COVID-19 business grant program opened 19 July 2021.

Read the guidelines and terms and conditions:

Under the program, businesses (including non-employing sole traders and certain not-for-profit organisations) affected by the recent NSW public health order can apply for a one-off payment to help meet certain business costs incurred between 1 June and 17 July 2021.

The NSW program is intended to help NSW businesses by providing a one-off payment as cash flow support until the JobSaver scheme commences. The JobSaver is a jointly funded initiative between the NSW government and the federal government, and will provide recurring payments to eligible entities based on their payroll size. JobSaver applications are expected to open on 26 July 2021. The JobSaver eligibility requirements have not yet been fully published, but are expected to have some similarities with those of the Program.

Tiers of payment under NSW program

An entity can apply for a one-off payment based on its decline in turnover for a minimum two-week period between 26 June 2021 and 26 July 2021, compared to its turnover for the corresponding period in 2019. Goods and services tax concepts of turnover will be applied when assessing whether an applicant experienced a decline in turnover.

  • $7,500* (Tier One: 30% or more decline in turnover)
  • $10,500 (Tier Two: 50% or more decline in turnover)
  • $15,000 (Tier Three: 70% or more decline in turnover)

*$=Australian dollar

Eligibility requirements include

  • Having an Australian Business Number (ABN) registered in NSW, or demonstrating the entity was physically located and operating in NSW as at 1 June 2020
  • Aggregated annual turnover between $75,000 and $50 million for the year ended 30 June 2020
  • Total annual Australian wages of $10 million or less at 1 July 2020
  • Maintaining employee headcount (that is, the total number of persons employed in NSW as at 13 July 2021 as permanent full or part-time staff, or as casual staff who had been employed for more than 12 months)
  • Incurring eligible expenses as business costs (e.g., rent, utilities, wages, perishable goods that can no longer be used, marketing and professional advice on business continuity planning) for which there was was/is no other government support available
  • Not being on a list of ineligible entities

Claimants are required to provide a greater level of documentary support if they wish to claim the Tier Three amount, or if the business is not covered by the list of highly impacted industries on the NSW government website. Businesses will need to keep records supporting their eligibility for up to five years. Businesses that are part of a group may not be certain of their eligibility until the application of the aggregated annual turnover threshold has been clarified.


For more information, contact a KPMG tax professional in Australia:

Matt Hayes | +61 2 9295 3861 | mhayes2@kpmg.com.au

Andy Hutt | +61 2 9335 8655 | ahutt@kpmg.com.au

 

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