The NSW Government has announced a new grants package to support small businesses and people impacted by the current COVID-19 restrictions.
The package includes grants of between $5,000 and $10,000 for small businesses, payroll tax deferrals for all employers, plus an extension to the Dine & Discover program.
The new grants will be divided into two streams:
1. The Small Business COVID-19 Support Grant is available to businesses and sole traders with a turnover of more than $75,000 per annum but below the NSW Government 2020-21 payroll tax threshold of $1,200,000 as at 1 July 2020. Businesses must also have fewer than 20 full time equivalent employees.
2. The Hospitality and Tourism COVID-19 Support Grant is available to tourism or hospitality businesses that have a turnover of more than $75,000 and an annual Australian wages bill of below $10 million, as at 1 July 2020.
To be eligible for either grant, businesses must have an Australian Business Number registered in New South Wales or be able to demonstrate they are physically located and primarily operating in New South Wales.
Three different grant amounts will be available for small businesses depending on the decline in turnover experienced during the restrictions: $10,000 for a 70 per cent decline, $7,000 for a 50 per cent decline and $5,000 for a 30 per cent decline.
The grants can be used for business expenses such as rent, utilities and wages, for which no other government support is available.
NSW Premier Gladys Berejiklian said the support will help to alleviate cashflow constraints while trading is restricted.
“We always said we will do whatever it takes to support businesses and keep people in jobs during the pandemic and that is exactly what we are doing,” she said.
“The current restrictions are in place to protect people and keep the community safe, unfortunately businesses continue to incur costs such as rent, power and lost produce, and this will go some way to lessening that financial pain.”
The small business grants will be available for sole traders and non-for-profit organisations, with expanded criteria to assist most hospitality and tourism operators hit hard by the restrictions during school holidays.
Businesses will be able to apply for the grants through Service NSW from July and will need to show a decline in turnover across a minimum two-week period after the commencement of major restrictions on June 26.
The state’s Dine & Discover vouchers will also be extended until 31 August 2021 and can now be used for takeaway during the restriction period, if the food is delivered directly to the home by the restaurant or café.