The NSW Government has recently announced a billion dollar small business support package for struggling small businesses.
Since the beginning of the COVID-19 pandemic the Government has provided various economic support to businesses.
This additional much needed support package comes after months of uncertainty for small businesses, following the rise of cases from the Omicron COVID-19 variant.
Although NSW has not been put into lockdown, businesses have seen a dramatic decline in cash flow in what some are calling the ‘shadow’ lockdown.
What does the small business support package include?
The support package provides eligible employing businesses with a lump sum payment of 20 per cent of their weekly payroll.
The payment will be a maximum of $5,000 per week for the month of February 2022, the minimum weekly payment for employers is $750 per week.
Eligible non-employing businesses will receive $500 per week which will be paid as a lump sum of $2,000.
Who is eligible for the payments?
In order to be eligible for the small business support package, businesses must:
- Have an aggregated annual turnover between $75,000 and $50 million for the financial year ending 30 June 2021.
and
- Experienced a decline in turnover of at least 40 per cent due to Public Health Orders, or the impact of COVID-19 during the month of January compared to previous years.
- Experienced a decline in turnover of 40 per cent or more from 1 to 14 February 2022 compared to the same fortnight in either 2021 or 2020
- Maintain their employee headcount from 30 January 2022.
The support package only covers the month of February 2022. Applications for support are expected to open mid-February.
Fees and charges rebate increased and extended to Rapid Antigen Tests
The NSW small business fees and charges rebate has been increased from $2,000 to $3,000. In addition, the rebate has been extended to cover up to 50 per cent of the cost of Rapid Antigen Tests (RATs) purchased by the business to protect staff and clients.
The rebate for RATs will be available by March and is unlikely to cover RATs purchased prior to the funding coming online. This is to prevent additional pressures on the RAT supply chain.
The rebate is not a cash payment but a digital credit that businesses can draw down on to offset the cost of eligible NSW and local government fees and charges. Applications for this rebate are open until the end of April 2022 (or when the allocation is exhausted).
Eligibility for RAT rebate
The fees and charges rebate are available to sole traders, small business, and not-for profits that have:
- Total Australian wages below the NSW Government 2020-21 payroll tax threshold ($1.2 million)
- An Australian Business Number (ABN) registered in NSW and/or have business premises physically located and operating in NSW.
- Already registered businesses will receive an automatic top up of $1,000 and newly registering businesses will receive a rebate of $3,000. Only one rebate is available for each ABN.
Commercial landlord relief extended
The protections under the Retail and Other Commercial Leases (COVID-19) Regulation 2021 for small retail and commercial tenants will also be extended for an additional two months, until 13 March 2022.
This regulation prohibits certain actions by landlords (such as lock out or eviction) unless they have first renegotiated rent with eligible tenants and attempted mediation.
The grant provides up to $3,000 per month, per property, for eligible landlords who have provided rental waivers to affected tenants.
Rent waived must comprise at least half of any rental reduction provided. The remaining portion may be a rental deferral. The grant does not apply to rent deferrals. Grants are paid as a lump sum amount for the rent waived.
