NSW Business Support Package expansion
- Written by Scott Morrison
The Morrison and Berejiklian Governments continue to work together to support businesses in New South Wales during the current COVID-19 lockdown.
With Greater Sydney set to remain in lockdown until at least 28 August 2021, both governments have agreed to expand the COVID-19 Business Support Payment.
Under the expanded payment, eligible entities, which includes not-for-profits, will now receive payments of between $1,500 and $100,000 per week based on the level of their payroll with the maximum turnover threshold increased from $50 million to $250 million.
The payment will continue to be calculated based on 40 per cent of payroll for businesses that have suffered a 30 per cent or more decline in turnover.
For non-employing businesses, such as sole traders, the payment will remain set at $1,000 per week.
The expanded payment will now cover more than 400,000 businesses employing 3.3 million workers in NSW subject to eligibility.
The payment will also provide more substantial support for businesses to cover unavoidable costs such as rent, insurance and maintenance as well as employee costs during an extended lockdown.
The expanded support will continue to be conditional on businesses maintaining their employee headcount as at 13 July (covering permanent and long-term casual employees) by not taking active steps to terminate their employment.
This will help maintain the connection between employers and employees and in doing so support the economic recovery once restrictions are eased.
The expanded payment will take effect from 18 July 2021, the start of the program. Businesses that have already submitted an application will not need to do anything, their payment will be automatically adjusted consistent with the expanded program.
Workers who have lost hours will continue to be supported by the COVID-19 disaster payment with more than 812,000 claims granted in NSW to date with more than $411 million in weekly payments.
The Prime Minister Scott Morrison said as NSW’s restrictions looked set to continue, his government had been developing options to supercharge the partnership with NSW to support businesses.
“These businesses are the ones we all need still standing to drive the recovery on the other side,” the Prime Minister said.
“Our support has never been set and forget and even before Service NSW had started to deliver the support on Monday that we announced earlier this month, my government had been looking at what else businesses would require to strongly emerge on the other side of this lockdown.
“Whether you’re a worker who has lost their income or a business that’s suffering, even more help is on the way.”
The Treasurer Josh Frydenberg said as the virus and the situation in NSW continues to evolve so does the Morrison Government’s response.
“The expansion of the NSW COVID-19 Business Payment remains consistent with the approach we have taken throughout the pandemic in delivering temporary, targeted and proportionate economic support,” the Treasurer said.
“Up to an additional 1,900 businesses employing around 300,000 people could benefit from the expanded eligibility while increasing the cap will also make the payment more generous for some businesses currently accessing support.”
Businesses should contact Services NSW or visit https://www.service.nsw.gov.au/ for more information.