NSW Government provides $3.4b funding

Client Alert

By: Vince Tropiano, Kirsten Taylor-Martin

09 Sep 2021 3 min read

Last week, the NSW Government announced a $3.4b funding injection for businesses and individuals affected by the state’s current lockdown.
Contents

The funding, which includes $1.5b from the Commonwealth, will extend the JobSaver program, Micro-business Grant and rent relief incentives in NSW.

The NSW Government is also providing further reductions in payroll tax, and allowing eligible businesses to defer their payroll tax payments due between July 2021 and December 2021, until 14 January 2022.

Key highlights

  • Extending JobSaver from 28 August

    • Businesses, with a turnover between $75,000 and $250m, that experience a minimum of 30% decline in turnover due to the lockdown are eligible for payments of up to 40% of their pre-COVID weekly NSW payroll.
    • Hospitality, tourism and recreation businesses, with a turnover of over $250m and up to $1b, may also be eligible. Eligibility applies to businesses in the $250m to $500m turnover category that experienced a decline in turnover of 50%, and businesses with a turnover of $500m to $1b that experience a decline in turnover of 70%. These businesses are eligible for payments of up to 40% of their pre-COVID weekly NSW payroll, up to $500,000 per week.
    • Eligible Not for Profit (NFP) organisations with a turnover between $75,000 and $250m that experience a minimum of 15% decline in turnover due to the lockdown are eligible for payments of up to 40% of their pre-COVID weekly NSW payroll.

  • Extension of the COVID-19 Micro-business Grant from 28 August

    • Eligible businesses with a turnover between $30,000 and $75,000 that experience a minimum of 30% decline in turnover can access a fortnightly payment of $1,500.

  • Extension of payroll tax deferrals and waivers

    • Any business eligible for a 2021 COVID-19 Business Grant or JobSaver with payrolls up to $10m will be able to access a 50% waiver in their 2021-22 payroll tax (up from 25%).
      All businesses will be able to defer payroll tax payments due from July 2021 through to December 2021, to be due in 14 January 2022, with 12-month interest free repayment plans also available.

  • Extension of rent relief for commercial, retail, and residential landlords

    • Commercial and retail landlords that provide rental waivers to COVID-19 impacted tenants, and have not claimed land tax relief, will be eligible for a monthly grant of up to $3,000.
    • Residential landlords can either apply for land tax relief or a further payment of $1,500 (up to a maximum of $4,500 per tenancy) if they agree to reduce the rent for COVID-19 impacted tenants by at least $4,500.

The support packages come as the NSW Premier Gladys Berejiklian this week announced plans to reopen NSW to public dining and events once 70% of the population is vaccinated, which is expected to be mid-October.

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Authors

  • Vince Tropiano

    Vince has over 30 Years taxation experience, including over 20 years as a Partner. He works closely with multinational organisations, supporting them on all corporate and international tax matters. He has a particular focus on tax governance and tax risk management, supporting organisations with development of their tax governance structure as well as supporting them through any ATO audit and review activity. View Profile

  • Kirsten Taylor-Martin

    Kirsten is a Partner and National Head of Family Business Consulting for Grant Thornton Australia. View Profile

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