GRANTS AND PAYMENTS AVAILABLE FOR BUSINESSES AND INDIVIDUALS
The state governments of Victoria, New South Wales and South Australia are currently offering assistance to all those currently under lockdown. This newsletter is aimed at giving you a very brief rundown on what is currently available in all 3 states, so please review the appropriate links in this newsletter for full eligibility criteria and instructions on how to apply for these payments.
COVID-19 Disaster Payment - For eligible individuals who have suffered loss of work due to the current lockdown:
- $600 dollars per week if you have lost more than 20 hours of work per week from the 16th of July
- $375 dollars per week if you have lost less than 20 hours of work per week from the 16th of July
- Payments are being claimed through Services Australia, with full instructions here
Top up payments for successful applicants of prior Victorian grants:
- Successful applicants of the Business Costs Assistance Program Round 2 will receive a further payment of $2,000
- Successful applicants of the Licensed Hospitality Venue Fund 2021 will receive a further payment of $3,000
- These payments will be automatically processed by the end of July and there is nothing further businesses need to do to receive them
- Businesses who were not eligible for either grant previously, or who did not apply, will be given the opportunity to apply for them again by the end of July
- Please keep and eye on the Business Victoria website here for further information
Payroll Tax Defferal:
- Employers with Victorian payrolls up to $10 million, based on their 2020 financial year annual reconciliation returns, can defer their 2021 payroll tax liability until the 2022 financial year as follows:
- At least 25% of the 2021 liability will be due on the 7th of September 2021
- At least 50% of the 2021 liability will be due on the 7th of December 2021
- At least 75% of the 2021 liability will be due on the 7th of March 2022
- Any outstanding balance of the 2021 liability will be de on the 7th of June 2022
- To be eligible for this deferral measure, employers must lodge their annual reconciliation returns for the 2021 financial year by no later than the 27th of August 2021
New Jobs payroll tax credit:
- Eligible employers will receive a credit of 10 cents for every dollar of Victorian taxable wages paid in the relevant financial year that are above the previous financial year’s wages
- This is applicable for the 2021 and 2022 financial years
- To be eligible, employers payrolls must not exceed $10 million
For more information on payroll tax relief please visit the state revenue office website here.
NEW SOUTH WALES
COVID-19 Disaster Payment for individuals – Similar to that of Victoria, however Sydney has different payments for individuals living in Sydney, Greater Sydney and other areas of NSW. The following lists payments for parts of Sydney only:
- $500 dollars per week if you have lost more than 20 hours of work per week from between the 1st of July to the 14th of July
- $325 dollars per week if you have lost less than 2o hours of work per week from between the 1st of July to the 14th of July
- $600 dollars per week if you have lost more than 20 hours of work per week from the 15th of July
- $375 dollars per week if you have lost between 8 and 20 hours of work per week from the 15th of July
Full details on the above and payments to other areas of NSW can be found here. Claims are again made through Services Australia.
COVID-19 Business grant:
- This is a one-off payment to help businesses with cashflow support for the first 3 weeks of lockdown
- Payments range from $7,500 to $15,000, depending on the quantum of the business’s decline in turnover
- Eligibility criteria includes a fall in business turnover by at least 30% or more, annual turnover of above $75,000 and payroll of up to $10 million
- More eligibility information on eligibility criteria and how to apply can be accessed here
COVID-19 Micro Business Grant:
- A fortnightly payment of $1,500 per fortnight for businesses with a turnover of between $30,000 to $75,000
- Your business turnover must have dropped by at least 30% to be eligible.
- Aimed towards sole traders
- More information on eligibility criteria and how to apply can be found here
- For eligible businesses who employ, 40% of weekly payroll will be reimbursed with a minimum payment of $1,500 per week to a maximum of $10,000 per week
- Eligibility criteria to access these payments include having an active Australian Business Number (ABN), an aggregated turnover of between $75,000 to $50 million and have experienced a decline in turnover of 30% or more
- Businesses who don’t employ can also receive $1,000 per week
- More information can be found here
Payroll Tax Deferral and support payment arrangements for all businesses:
- Payments for payroll tax on wages paid during the 2021 financial year can be deferred until the 7th of October 2021
- The 2021 annual reconciliation report must be lodged by the 7th of October
- Once lodged, businesses will have the option of paying all of their outstanding liabilities in full or by entering into a new support payment arrangement
Payroll Tax Reduction:
- Businesses whose total Australian wages for the 2022 financial year is $10 million or less and have had a decline in revenue of 30 percent or more, will have their annual tax liability reduced by 25 percent.
- More information on this 25 percent reduction will be provided on the Revenue NSW website by the end of August 2021.
- Keep an eye here for more information.
COVID-19 Disaster Payment for individuals – Similar to that of Victoria and New South Wales:
- $600 per week if you have lost more than 20 hours of work for the week between the 20th of July to the 26th of July.
- $375 per week if you have lost less than 20 hours of work for the week between the 20th of July to the 26th of July.
- Full details on how to claim this through Services Australia can be found here.
Business Support Package:
- A one off $3,000 cash grant will be available to businesses operating in South Australia shortly.
- To receive the full grant, eligible businesses must also employ staff.
- For businesses who don’t employ, a reduced $1,000 grant is still available.
- More eligibility criteria can be found here.
- Although applications are not yet opened, they will be made through the South Australia Treasury website. You can register your interest now here.
If you have any questions regarding anything mentioned above, please contact hmh on +61 3 9840 2200.