Tax-free NSW and Victorian business support payments announced
Client AlertSome welcome news for many businesses in New South Wales and Victoria, with some key COVID-19 business support programs in these lockdown-impacted states now tax-free.
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The first fortnight was from 13 September – 26 September 2021. However some reprieve has been provided to reduce the compliance burden. The new requirements are summarised below.
Businesses must reconfirm their eligibility each fortnight, by the end of the fortnight. The first fortnight will be from 13 September – 26 September 2021.
Businesses will need to reconfirm that:
There are three comparison periods businesses may use.
If the business becomes ineligible for one fortnight, it will not be disqualified from becoming eligible again in future fortnights if the eligibility conditions are satisfied. The business will be given an opportunity to declare its eligibility for the fortnight and will not be required to re-apply.
This should not be an issue as the option to reconfirm eligibility will remain open for each fortnightly period. Service NSW permits multiple fortnightly re-confirmations to be done in one hit (e.g. at month end, if that is when the business’ trading position is clearer using the client’s accounting software). This ‘bulk’ re-confirmation will then trigger payment of each of the relevant fortnightly payments.
Some welcome news for many businesses in New South Wales and Victoria, with some key COVID-19 business support programs in these lockdown-impacted states now tax-free.
In response to the persistent occurrence of outbreaks and lockdowns in our major cities, the Federal Government has come to the table with additional support for businesses impacted by extended lockdowns.