News
Juston Jirwander Bishop Collins Accountants headshot

Juston Jirwander

Director Business Services

3 cafe owners out the front of the cafe sitting down with their head in their hands disappointed about COVID lockdown restrictions on their business
The hospitality industry takes another big crash as we head into lockdown 2.0 in NSW.

COVID 19 NSW Lockdown 2.0 – The Government stimulus package announced

Well here we are again, lockdown for Greater Sydney and heavy restrictions for regional NSW.

It’s no surprise businesses are going to feel this lockdown as perhaps even a bigger blow than the initial lockdown back in March last year. The NSW Government has responded to the pressure that a lockdown has placed on affected businesses and employees.

This morning the NSW Treasurer Dominic Perrottet, has announced the following stimulus package to help those most affected by the current lockdown. The Treasurer has stated this package  is “about keeping businesses in business, people in jobs and cash flow flowing”.

What is the government stimulus package?

This Government stimulus package applies to all of NSW, not just the current hot-spot areas or areas in lockdown.

  1. Individual payments to small businesses, with up to 20 full time employees, or having payrolls up to $1.2 million with turnover of over $75,000 p/year. This includes sole traders.

Payments are as follows:

  • $10,000 with a turnover reduction of 75% experienced during the restrictions
  • $7,000 payment with a turnover reduction of 50% experienced during the restrictions
  • $5000 payment with a turnover reduction of 30% experienced during the restrictions
  • This payment will also be available to the tourism, accommodation and hospitality sector, with payrolls of up to $10 million.
  • Businesses must have an ABN registered in NSW or demonstrate they are physically located and primarily operating in NSW.
  1. An optional deferral of payroll tax payments due in July 2021 is available.
  2. Gaming tax liabilities may also be deferred for hotels, for the July period into August, to provide cash flow opportunities for those impacted businesses.
  3. Dine and Discover vouchers will also be extended until the end of August and can be used for takeaway services (some conditions apply).

The state’s support will be offered in addition to the Commonwealth’s COVID-19 disaster payment, which prime minister Scott Morrison said will be made to affected workers from 1 July.  Support for eligible workers is as follows:

  • Workers who are unable to work because of lockdown restrictions will be eligible for $500 a week if they normally work more than 20 hours each week.
  • If your hours were less than 20 hours a week you will be entitled to a $325 p/week payment.
  • If you are a casual worker and you’ve had your hours reduced by greater than 20 hours you are entitled to a $500 p/week payment.

Who is eligible and how do I receive payment?

Eligible workers will include Australian citizens, residents and visa holders who are permitted to work in Australia and aged 17 and older.

Individuals should go to Service NSW to find information regarding claiming these payments.

Finally support for homeless will also be provided with a $10.3 million of support to provide support for 3100 rough sleepers. This will help to get people into temporary accommodation for 14 days. Information regarding this can be found on the Dept. of Community Services website.

The treasurer announced the funds will be available from 19th July and you will need to provide evidence through an accountant to show a decline in turnover, and hopes this “will provide rapid relief to support businesses recover from this difficult time”.

Leave a Reply

Your email address will not be published. Required fields are marked *

    Business Plan Template

      Tax tips