The NSW Government has announced a major economic support package worth billions of dollars serving a purpose to help businesses and individuals right across the state who have been impacted by the latest covid-19 lockdown.
Treasurer Dominic Perrottet said the NSW Government was offering support in as many areas as possible, with payroll tax cuts for eligible businesses, up to $75 million in support for the performing arts sector and $26 million for the accommodation industry.
The support package will now be up to a total of $5.1 billion, this includes more than $1 billion from the Commonwealth as part of a business and employee support program.
The business grants program announced at the end of June has also been expanded, with grants between $7500 and $15,000 available to eligible businesses with annual wages up to $10 million.
A new grant program has also been introduced for smaller micro businesses with turnover between $30,000 and $75,000.
Thousands of employees will also be protected with NSW committing half of a new $2.1 billion business and employee support program to be delivered together with the Commonwealth.
Businesses in NSW will benefit from payroll tax waivers of 25 percent for businesses with Australian wages of between $1.2 million and $10 million that have experienced a 30 percent decline in turnover.
The NSW Government will also cover the disaster recovery payments for areas outside the Commonwealth declared hotspots from week four of the NSW lockdown providing valuable support across the state.
Residential tenants will have greater protection with a targeted eviction moratorium. Residential landlords who decrease rent for impacted tenants are eligible to apply for a grant of up to $1,500 or land tax reductions depending on the details of their situation.
Commercial and retail landlords will be required to attempt mediation before recovering a security bond, or locking out or evicting a tenant impacted by the Public Health Order.
Commercial, residential and retail landlords liable for land tax will be eligible for a land tax concession in situations where they reduce the rent of their tenant.
From Sunday 18th July, the Covid-19 Disaster Payment will also increase from $500 to $600 each week if a person has lost 20 hours or more of work a week, or $325 to $375 each week if a person has lost anywhere between 8 and 20 hours of work.
The increased payment will be available to NSW individuals outside Commonwealth-declared hotspots in Sydney if they have lost hours and satisfy the eligibility criteria.
The payment will be a recurring payment for approved recipients for as long as the Commonwealth-declared hotspot and lockdown restrictions remain in place. This will remove the need for recipients to re-claim for each seven-day period of a lockdown.
Key components of the 2021 Covid-18 support package include:
- An extension to the previously announced business grants program. This means eligible businesses with Australian wages below $10 million can claim grants between $7,500 and $15,000 to cover the first three-weeks of restrictions, and takes the potential size of the program to $2.1 billion;
- Up to $2 billion committed to the scheme to provide cashflow support to businesses to help them retain staff, to be delivered together with the Commonwealth.
- Payroll tax waivers of 25% for businesses with Australian wages of between $1.2 million and $10 million that have experienced a 30% decline in turnover, as well as payroll tax deferrals and interest free repayment plans;
- A new grants program for micro businesses with a turnover of between $30,000 and $75,000 which experience a decline in turnover of 30%. The businesses will be eligible for a $1,500 payment per fortnight of restrictions.
- A capped grant of up to $1,500 for residential landlords who are not liable to pay land tax who reduce rent for tenants estimated at $210 million;
- Land tax relief equal to the value of rent reductions provided by commercial, retail and residential landlords to financially distressed tenants, up to 100% of the 2021 land tax year liability;
- Introduction of legislative amendments to ensure a short-term eviction moratorium for rental arrears where a residential tenant suffers loss of income of 25% due to COVID-19 and meets a range of criteria.
- No recovery of security bonds, or lockouts or evictions of impacted retail and commercial tenants prior to mediation;
- Deferral of gaming tax assessments for clubs until 21 December 2021 and hotels until 21 January 2021;
- A $75 million support package for the performing arts sector to be administered by Create NSW;
- A support package for the accommodation sector worth $26 million;
- $12 million in additional funding for temporary accommodation for those at risk of or experiencing homelessness, and
- $5.1 million in NSW funding to support mental health.
The team at C&D Restructure and Taxation Advisory are here to help. As part of the Vault Group we can offer the full suite of financial products and advice to help you navigate the business landscape. Schedule a meeting here via Calendly or give us a call on 07 36086800.
The team at C&D Restructure and Taxation Advisory are here to help. As part of the Vault Group we can offer the full suite of financial products and advice to help you navigate the business landscape. Schedule a meeting here via Calendly or give us a call on 1300 1 VAULT (1300 182 858)
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