The idea is to reduce cash flow constraints so that money can be utilised to pay for things like rent, electricity, and wages. Sole traders and non-profit organisations can also apply for the grant.
Business owners will be able to apply for assistance starting later in July, with funding tiered on how much their turnover declined during the two week period after 26 June 2021.
The value of each grant is tiered based on decline in turnover as follows:
- $10,000 for a 70% decline
- $7,000 for a 50% decline
- $5,000 for a 30% decline
There are two grants available:
1. Small business COVID-19 Support Grant
- a. Available to businesses and sole traders meeting the following criteria:
- b. Turnover of more than $75,000 per annum
- c. Annual payroll below the payroll tax threshold of $1.2M at 1 July 2020
- d. Fewer than 20 full-time equivalent employees
- e. Must have an ABN registered in NSW or able to demonstrate they are physically located and primarily operating in NSW
2. Hospitality and Tourism COVID-19 Support Grant
- a. available to tourism or hospitality businesses meeting the following criteria:
- b. Turnover of more than $75,000
- c. Annual Australian wages of less than $10M as of 1 July 2020
(Full criteria will be available in the coming days on the Service NSW website)
- 1. Optional deferral of payroll tax payments due in July 2021 and deferral of hotel June quarter gaming machine tax, with repayment arrangement on a case by case basis
- 2. Dine & Discover vouchers able to be used for takeaway, but food must be delivered directly to the home (and not pick up).
- 3. Dine & Discover vouchers extended to 31 August 2021.
The relief packages are available across the entire state to provide assistance to rural businesses impacted by reduced tourism during the lockdown.
More information on the small business support grants and full criteria for eligibility to follow in the coming days.
Get in touch with Corporate Lifeline for advice. We can help ascertain your eligibility and the potential value of the grant for your business.