Current Financial Support Available to New South Wales Residents & Businesses

New South Wales (NSW) residents and businesses continue to be faced with hurdles following the recent Omicron wave and current flooding events. Fortunately, the Federal and NSW Governments are offering an extensive range of financial assistance available to eligible businesses, families and individuals. If you are an NSW business or individual that has been affected by either of these events, find out about all the funding opportunities available to you.

Australian Government Payments

Disaster Recovery Payment

This aid is a lump sum payment available to eligible individuals in Northern NSW who have been severely impacted by the February 2022 floods. Eligible applicants will receive $1,000 per adult and $400 for each child younger than 16.

To be eligible, you must:

• Be an Australian resident or hold an eligible visa
• Meet Local Government Area rules (LGAs)
• Have been seriously affected by the storms and floods (e.g., seriously injured or suffered major property damage)

Applications must be made through myGov, Linked Services, Centrelink and are due 28 August 2022. If you have not done so already, you will need to create a myGov account and link Centrelink to this account to lodge your application.

Disaster Recovery Allowance

This allowance is available to eligible individuals in NSW who have lost income because of the recent floods. Eligible applicants will receive the payment for up to 13 weeks from the date on which the individual started losing income. Depending on personal circumstances, you will receive the maximum equivalent rate of JobSeeker Payment or Youth Allowance.

To be eligible, you must:

• Be 16 or older
• Be an Australian resident or hold an eligible visa
• Lost income as a result of the storms and floods
• Be earning less than the average Australian weekly income ($1,737.10) after losing income

Application process and due dates are identical to the Disaster Recovery Payment above.

NSW Government Payments

Small Business Recovery Grant

Small businesses (i.e., businesses with 20 or fewer full-time equivalent employees) which have suffered direct damage to business assets because of the floods may be entitled to a grant of up to $50,000 to help pay for the costs of clean-up and reinstatement of the business’ operations within the same area.

The funding is available in two tranches. The first $15,000 will be made available upon providing valid tax invoices which evidence the total planned expenditure. Further funds up to the $50,000 then will become available once evidence of payment of these relevant costs is submitted.

This grant is not available to small businesses which already have successfully received funding from another source or program (including from donations), or which are entitled to claim for restorative expenses under an insurance policy. The grant also is not available to reimburse small businesses which only have suffered a loss of income due to the floods.

Applications now are open and can be submitted online through a business’ MyService NSW account. Further details about this grant can be found here.

Disaster Relief Loans

Low interest rate (0.80%) loans are available to small businesses affected by the severe weather and flooding in NSW from 22 February onwards. Upon application, small businesses will receive concessional loans of up to $130,000 for a maximum loan term of 12 years (with the initial two years interest and repayment free). The loan must be secured by a registered mortgage. The detailed eligibility criterion and application process can be viewed here.

To lodge your application for this loan, you can either complete a hard copy application form or access the online application form here. Applications close on 1 September 2022.

Ongoing Support for NSW Businesses

NSW Payroll Tax Relief

On 1 March 2022, the NSW Government announced that businesses with total grouped wages of less than $10 million which have experienced a 30% decline in turnover over a demonstrable period will be entitled to a 50% reduction of their annual payroll tax liability for 2021-2022. The 50% reduction will be calculated and applied when the 2021-2022 Annual Payroll Tax Reconciliation is submitted. However, if businesses believe they are eligible, they are permitted to factor this 50% reduction into their monthly returns accordingly. Businesses who were eligible for the COVID-19 Business Grant or JobSaver payment automatically will be eligible for this payroll tax relief.

NSW Business Support Package

The NSW government has announced a $1 billion support program for businesses and workers hit by the economic impact of the Omicron wave. The key points of this program including eligibility criteria are summarised below.

The 2022 Small Business Support Program – Is Your Business Eligible?

To be eligible for this program the business must:

• Have had a turnover of between $75,000 and $50 million for the year ended 30 June 2021 or 30 June 2020; and
• Have had experienced a minimum 40% decline in turnover in January 2022 compared to January 2021 or January 2020; and
• Have had experienced a minimum 40% decline in turnover between 1 to 14 February 2022 compared to the same fortnight in February 2021 or February 2020; and
• Have maintained their employee headcount from 30 January to 28 February 2022; and
• Not earn more than 50% of its income through passive sources (e.g., rent, interest).

Employing businesses will be eligible to receive 20% of weekly payroll as a lump sum for the month of February, with a minimum payment of $750 per week and a maximum payment of $5,000 per week. Non-employing businesses will receive $500 per week, paid as a lump sum of $2,000.

This program is for the month of February only. Businesses are now able to apply online through their MyService NSW accounts until 31 March 2022.

Businesses and landlords also should be aware of extensions to the Small Business Fees, Charges & Rapid Antigen Tests Rebate, as well as the Commercial Landlord Hardship Grant, which aims to compensate commercial landlords who have provided rental relief to tenants affected by COVID-19 restrictions.

 

If you have any questions about these programs, please call or email us to discuss with a Macro Team member today.

 

18 March 2022

The Macro Group Limited AFSL:485843 Tax Agent Number 24 76 5236.

The information in this article  contains general information only. We have not taken into consideration any of your personal objectives, financial situation or needs. Before taking any action, you should consider whether the general advice contained in this communication is appropriate to you having regard to your circumstances and needs, and seek appropriate professional advice if you think you need it. We recommend that you consult a licensed or authorised financial adviser if you require financial advice that takes into account your personal circumstances.