This last week and month has been historic with local, state and federal governments announcing high impact support financially in response to Covid 19 crisis.
As our businesses seek strategies and ways to sustain, maintain and adapt during these uncertain times, the multi level Government support offered to assist businesses, employers, employees, tenants and renters is paramount to many of them surviving. Our local, state and federal Government summary for SMEs is below:
CITY OF SYDNEY
City of Sydney Economic Support for those affected by Coronavirus.
The Small Business Grants Program, valued at $2 million, will support businesses with innovation and adaptation grants to modify their operating models to produce income and supply products or services to address a current or emerging demand in the market, develop online and e-commerce capabilities, undertake training and professional development and invest in capital works.
Small Business Grants
The City of Sydney Council's assistance offers $10,000 small business grant program for local businesses adversely affected by Coronavirus and
The aim of this grant is to allow businesses the means to:
- modify their systems to be able to produce income and supply products in the current social distancing requirements,
- develop online and e-commerce capabilities
- do training and professional development to better prepare for return to business activities
- invest in capital works to help the business benefit from the economic recovery
Applications for this grant are now open, and must be submitted by 5pm, 27 April.
There is also a quick response grant, between $2,000 - $5,000 for individuals, sole traders, unincorporated community groups, not-for-profit organisations and for-profit organisations.
This grant is to help communities adapt, survive and recover from the pandemic, including:
- Feeding vulnerable community members
- Providing digital assistance to vulnerable community members
- Helping vulnerable community members feel connected
- Strengthening community support networks
- Delivering performances, creative work and classes online
- Helping businesses to continue to trade
Learn more about how to apply for these grants in the links below. Applications close 27 April.
NSW GOVERNMENT (NSW Govt Apps HERE)
Allocating $750 million into the Small business Support Fund to help business afloat during the federal government shutdown, the NSW Government has announced a COVID-19 Small Business Support Grant of $10,000 which will be eligible to NSW small business owners.
To be eligible, businesses will need to:
- have between 1-19 employees and a turnover of more than $75,000,
- a payroll below the NSW Government 2019-20 payroll tax threshold of $900,000,
- have an ABN as at 1 March 2020, be based in NSW and employ staff as at 1 March 2020,
- be highly impacted by the Public Health (COVID-19 Restrictions on Gathering and Movement) Order 2020 issued on 30 March 2020,
- use the funding for unavoidable business costs such as utilities, overheads, legal costs and financial advice
- provide appropriate documentation upon application
Eligible industries are those that have been subject to closure or are highly impacted by NSW Government health directions in relation to COVID-19 and include:
- accommodation and food services
- rental, hiring and real estate services
- administrative and support services
- arts and recreation services
Please note, the application form will not be available online until next week, on Friday 17 April at Service NSW and will remain open until 1 June 2020. As of today, no instructions on what details and documentation will be needed to apply for this grant have been issued yet, but we will keep you up to date on new developments.
NSW workers and businesses can access a 24-hour hotline on non-health related COVID-19 enquiries through Service NSW at 13 77 88
Renters and Landlords
The State Government will today announced yesterday $440 million in relief for renters and landlords affected by Government-enforced COVID-19 restrictions.
Commercial landlords will not be able to terminate a lease for rent not being paid, and must offer tenants rent relief proportionate to the tenant's decline in turnover.
The NSW Small Business commission will be bolstered with extra staff and an injection of $10 million from the $1 bullion Working for NSW Fund to help implement the policy.
The historical and incredible economic rescue for jobs last week saw the Morrison government’s $130bn wage subsidy package pass two bills to create the $1,500 fortnightly jobkeeper payment to keep Australian workers attached to jobs until the Covid-19 crisis abates.
The jobkeeper payment is the centrepiece of $300bn of federal government economic supports, which Scott Morrison described as “the biggest economic lifeline in Australia’s history.”
Affected employers will be able to claim a fortnightly payment of $1500 per eligible employee from 30 March 2020 until 27 September 2020. Six million full-time, part-time workers along with sole traders are expected to benefit from this scheme.
- Currently employed full-time, part-time, or long-term casuals (a casual employed on a regular basis for longer than 12 months as at 1 March 2020);
- Turnover of less than $1 billion and turnover will be reduced by more than 30 per cent relative to a comparable period a year ago (of at least a month); or
- Currently employed by the eligible employer (including those stood down or re-hired);
- Employed by the employer before 1 March 2020;
- Minimum 16 years of age;
- If you are an Australian citizen, the holder of a permanent visa, a Protected Special Category Visa Holder, a non-protected Special Category Visa Holder who has been residing continually in Australia for 10 years or more, or a Special Category (Subclass 444) Visa Holder; and
- Are not in receipt of a JobKeeper Payment from another employer.
The Government is providing temporary cash flow support to small and medium businesses and not-for-profit organisations that employ staff during the economic downturn associated with COVID-19 (novel coronavirus).
This will be done through two sets of cash flow boosts delivered from 28 April 2020 to support employers to retain employees.
The Government will provide tax-free cash flow boosts of between $20,000 and $100,000 to eligible businesses, delivered through credits in the activity statement system, when eligible businesses lodge their activity statements.
Eligible businesses do not need to apply with a separate form. Upon lodgement of their activity statement, the first amount will automatically be credited to the business’ account, but no earlier than 28 April 2020. A business that lodges early will not receive the cash flow boost before this date.
Eligibility — Businesses will be eligible to receive the cash flow boost provided they are;
• a small or medium business entity, including not-for-profit organisations, sole traders, partnerships, companies or trusts, that:
• held an ABN on 12 March 2020 and continues to be active;
• has an aggregated annual turnover under $50 million (generally based on prior year turnover); and
• made eligible payments that the business is required to withhold from (even if the amount required to be withheld is zero).
Eligible payments include:
• salary and wages
• director fees
• eligible retirement or termination payments
• compensation payments
• voluntary withholding from payments to contractors.
In addition, the business must also have either:
• derived business income in the 2018–19 income year and lodged its 2019 tax return on or before 12 March 2020; or
• made GST taxable, GST-free or input-taxed sales in a previous tax period (since 1 July 2018) and lodged the relevant activity statement on or before 12 March 2020.
Timing — Initial cash flow boost
The initial cash flow boosts will be delivered as credits in the activity statement system from 28 April 2020.
If a business lodges early, it will not receive the cash flow boost before this date. If the business lodges:
• Quarterly, it will be eligible to receive the credit for:
- quarter 3, March 2020 (lodgement due date 28 April 2020)
- quarter 4, June 2020 (lodgement due date 28 July 2020).
• Monthly, it will be eligible to receive the credit for the lodgement periods of:
- March 2020 (lodgment due date 21 April 2020)
- April 2020 (lodgement due date 21 May 2020)
- May 2020 (lodgment due date 21 June 2020)
- June 2020 (sourceent due date 21 July 2020).
Read more HERE