The NSW government is offering small businesses support grants to help alleviate cash flow constraints while trading is restricted, targeted particularly at sole traders and non-for-profit organisations, with expanded criteria to assist most hospitality and tourism operators.
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.
According to Premier Gladys Berejiklian, the funds, which are expected to hit accounts from next month, may be used to service expenses such as rent, utilities and wages, for which no other government support is available.
“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,” Ms Berejiklian said.
Applauding the NSW government’s latest announcement, Business NSW chief executive Daniel Hunter said the package is well targeted and is one of the “fastest and largest” business support packages from any state in response to the pandemic.
“Business NSW has been working with the government on this initiative since the lockdown was confirmed on Saturday, and by using the real experiences of our members, we were able to demonstrate the widespread need for a quick turnaround for this package,” Mr Hunter said.
“It’s often easy to sit back and criticise the government, but when they act quickly and for the benefit of business owners and their employees, they rightly deserve credit.”
Larger businesses haven’t been ignored either, with a number of state government taxes and charges deferred, with payments due later in the year.
Dine & Discover vouchers will also be extended until 31 August and can now be used at takeaway venues, so long as that food is delivered and not picked up.
“We all want this lockdown to be over as soon as possible so businesses can get back to doing what they do best: employing people and supporting their local communities,” Mr Hunter said.
How do the grants work?
The grants will be divided into two streams:
- Small Business COVID-19 Support Grant. 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.
These businesses must have fewer than 20 full-time equivalent employees and an Australian business number (ABN) registered in New South Wales or be able to demonstrate they are physically located and primarily operating in New South Wales. Full criteria will be available in coming days on the Service NSW website.
- Hospitality and Tourism COVID-19 Support Grant. 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.
These businesses must have an Australian business number (ABN) registered in New South Wales or be able to demonstrate they are physically located and primarily operating in New South Wales. Full criteria will be available in coming days on the Service NSW website.
Businesses will be able to apply for the grants through Service NSW from later in July and will need to show a decline in turnover across a minimum two-week period after the commencement of major restrictions on 26 June.