NSW COVID Assistance Package

By the leaders at PKF Sydney & Newcastle

19 July 2021

With Service NSW taking the bulk of claims for the first time, much remains unknown about eligibility for the support and how the process will work. PKF recommend for all that may be eligible to:

  1. Register their interest in the scheme immediately - here.
  2. Contact their PKF adviser to discuss the options available.

FOR BUSINESSES

  • Business Support Payment (including NFPs and sole traders) – entities with an annual turnover of between $75,000 and $50 million who can demonstrate a 30% decline in turnover will be eligible to receive payments of between $1,500 and $10,000 per week based on the level of their payroll. These businesses must have maintained their full-time, part-time and long-term casual staffing levels as of 13 July 2021.

    Sole traders and non-employing businesses are also eligible and the payment will be set at $1,000 per week.

  • Real estate and landlords – tenancy protections are in place and there are to be no evictions during lockdown and residential tenancies are protected for the next 60 days.
  • Payroll tax deferrals and waivers– are in place for businesses with payrolls of between $1.2 and $10 million.
  • Micro-businesses – entities with turnovers of between $30,000 and $75,000 will also receive a grant of $1,500 per fortnight backdated to week one of the lockdown where they can show the required 30% reduction in turnover.

This is on top of previously announced support for NSW that includes a business grants program providing between $7,500 and $15,000 for businesses with wages up to $10 million. Read more here.

FOR INDIVIDUALS

  • Disaster Payment – Individuals can access a $600 per week payment if a person has lost 20 or more hours of work a week, or $375 per week if they have lost between eight and 20 hours of work per week. This payment covers all of NSW and is not exclusive to declared hotspot areas.
  • Residential tenancy evictions – protections are now in place for the next 60-days.

Australian businesses tax deferrals higher than ever – whilst tax deferrals can benefit a business, without proper financial planning and modelling it can also hinder a business and send it into debt when collections begin. The reprieve from certain taxes won’t last forever and now is the time to speak with a specialist adviser if you have taken advantage of tax deferrals and are concerned about future impacts.

If you need advice as to how to best manage through these times, please contact your local PKF adviser.