Government support for small businesses in lockdown

September 28, 2021

Government support for small businesses in lockdown

September 28, 2021

Government support for small businesses in lockdown

  • Most support packages require a business to be registered for GST and have an ABN.
  • Every effort has been made to ensure accuracy as at the time of publication, but support packages and eligibility criteria are likely to change. Information on this page may not be complete or may have changed.
  • Check eligibility requirements on your state or territory government’s website, or search for your state on the Federal Government’s Business site.
  • This is a summary for general information only, none of the material is or should be regarded as advice of any kind.

Australian, state and territory governments are continuing some longer-term support for small businesses and introducing new measures to help businesses impacted by recent lockdowns.

With some cities and towns back in lockdown, some borders closed, and most of the country on high alert, support for small business recovery is in high demand.

Small businesses are, as Federal Treasurer Josh Frydenberg said in his Budget Announcement, the ‘engine room’ of our economy. Small businesses are also central to every community, and their recovery and success is good for those communities.

It’s also important to check your eligibility on your state or territory government’s website or search for your state on the Federal Government’s Business Support website to ensure you’re working with the most up-to-date information. We have highlighted the support available in NSW and VIC below

Support in NSW

COVID-19 Business Grants

A one-off payment of $7,500 to $15,000 may help businesses that were impacted in the first three weeks of the Greater Sydney lockdown – 26 June to 17 July 2021. The amount a business is eligible to receive will depend on its decline in turnover:

  • Tier 1: $7,500 for a decline of 30% or more
  • Tier 2: $10,500 for a decline of 50% or more
  • Tier 3: $15,000 for a decline of 70% or more

The grant is for businesses that have an annual turnover above $75,000 and a payroll up to $10 million. The decline must be shown by comparing an equivalent two-week period from June and/or July 2019 with the lockdown period of 2021. Application close 13 September 2021.

COVID-19 Micro Business Grants

The NSW Government announced an expansion to its small business support package that applies to small businesses with a turnover between $30,000 and $75,000.

If a ‘micro business’ can demonstrate a 30% reduction in turnover, it may be eligible to receive the $750 per week grant, so long as the business is the primary income source for a person associated with the business.

Find out more from Service NSW.

Payroll tax deferrals

Any business paying payroll tax can choose to defer payments on the 2020-21 annual reconciliation return and wages paid in July and August. Interest-free repayment plans for up to 12 months will be available.

Payroll tax concessions

If your business revenue in an equivalent two-week period in 2019 as compared to 2021 declined by 30%, and your business pays wages of between $1.2 million and $10 million, it may be eligible for a 25% payroll tax waiver for the 2021-2022 financial year.

Businesses in commercial or retail premises

Landlords cannot lock out or evict business tenants impacted by the lockdown without first going to mediation. Impacted tenants are protected by the Small Business Commissioner and encouraged to negotiate with landlords to reduce or defer rent payments.

Top-Up Payment

The July 2021 Top-Up Payment provides further support to eligible small and medium businesses in sectors impacted by the current restrictions.

Previous recipients of the Business Costs Assistance Program Round Two will receive an additional $2,000, and successful recipients of the Licensed Hospitality Venue Fund 2021 will receive an additional $3,000. These payments will be processed automatically in July 2021.

If you require any financial assistance for asset finance or businesses loans, please get in touch with the team at DFS who can talk you through your options.

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