2021 COVID-19 Business Grant

Yesterday the NSW Government released Guidelines for the 2021 COVID-19 business grant.

The grant is available to businesses across New South Wales that meet the eligibility criteria.

Applications open today 19 July 2021 and close at 11:59pm on 13 September 2021.

As detailed in our earlier blogs, eligible businesses (including non-employing businesses such as non-employing sole traders) can apply for a one-off grant:

• $7,500 (tier one): Businesses that have experienced a decline in turnover of 30% or more due to the Public Health Orders will be eligible for a grant of $7,500.
• $10,500 (tier two): Businesses that have experienced a decline in turnover of 50% or more due to the Public Health Orders will be eligible for a grant of $10,500.
• $15,000 (tier three): Businesses that have experienced a decline in turnover of 70% or more due to the Public Health Orders will be eligible for a grant of $15,000.

Business Industry Category

Businesses must provide evidence of their eligibility, which falls into two categories:

• businesses in highly impacted industries (per Attachment A: List of highly impacted industries);
• businesses outside of highly impacted industries.

The type of industry is listed under your ABN and is by way of a four-digit number called an ANZSIC code. Your ANZSIC code can be reviewed on the Australian Business Register (we can assist our clients with their codes).

If your business is outside of the highly impacted industries (and businesses in highly impacted industries and claiming the $15,000 grant), you will require supporting evidence in the form of a letter from either a:

• qualified accountant as defined in the Corporations Act 2001;
• registered tax agent as defined under the Tax Agent Services Act 2009; or
• registered BAS agent as defined under the Tax Services Act 2009.

Eligibility Criteria

$7,500 (tier one) grant

• have an Australian Business Number (ABN) and were operating in New South Wales as at 1 June 2021;
• have total annual Australian wages of $10 million or less as at 1 July 2020;
• had an aggregated annual turnover between $75,000 and $50 million (inclusive) for the year ended 30 June 2020;
• have business costs for which there is no other government support available;
• have experienced a decline in turnover of 30% or more due to the Public Health Orders over a minimum 2-week period from 26 June 2021 to 26 July 2021 compared to the same period in June and/or July 2019;
• maintain their employee headcount as at 13 July 2021 for the period for which the business is receiving payments under this Grant and the JobSaver scheme.

$10,500 (tier two) grant

• meet the eligibility criteria for the $7,500 (tier one) grant set out in Section 3.1, except they must:
  • have experienced a decline in turnover of 50% or more due to the Public Health Orders over a minimum 2-week period from 26 June 2021 to 26 July 2021 compared to the same period in June and/or July 2019.

$15,000 (tier three) grant

• meet the eligibility criteria for the $7,500 (tier one) grant set out in Section 3.1, except they must:
  • have experienced a decline in turnover of 70% or more due to the Public Health Orders over a minimum 2-week period from 26 June 2021 to 26 July 2021 compared to the same period in June and/or July 2019.

Evidence Required

Highly Impacted Industries

Businesses on the ‘highly impacted industries list’ apply for the $7,500 or $10,500 grants

• declare they experienced the required decline in turnover due to the Public Health Orders over a minimum 2-week period from 26 June 2021 to 26 July 2021 compared to the same period in June and/or July 2019;
• declare they have eligible expenses for which no other government support is available. They will not be required to provide evidence of costs on application (e.g. invoices) but will need to keep evidence of costs for a possible future audit;
• declare their employee headcount at 13 July 2021;
• declare they will maintain their employee headcount as at 13 July 2021 for the period for which the business is receiving payments under this Grant and the JobSaver scheme;
• provide details of their qualified accountant, registered tax agent or registered BAS agent for possible compliance checking;
• submit an Australian Income Tax Return (or Notice of Assessment) or other documentation to demonstrate their business had an aggregated annual turnover of between $75,000 and $50 million (inclusive) for the year ended 30 June 2020; and
• lodge other supporting documents as required to demonstrate that they meet the eligibility criteria.

Businesses on the ‘highly impacted industries list’ applying for the $15,000 grant

• declare they experienced a decline in turnover of 70% or more over a minimum 2-week period from 26 June 2021 to 26 July 2021 compared to the same period in June and/or July 2019; 
• submit evidence for their decline in turnover;
• declare they have eligible expenses for which there is no other support available. They will not be required to provide evidence of costs on application (e.g. invoices) but will need to keep evidence of costs for a possible future audit;
• declare their employee headcount at 13 July 2021;
• declare they will maintain their employee headcount as at 13 July 2021 for the period for which the business is receiving payments under this Grant and the JobSaver scheme;
• provide details of their qualified accountant, registered tax agent or registered BAS agent for possible compliance checking;
• submit an Australian Income Tax Return (or Notice of Assessment) or other documentation to demonstrate their business had an aggregated annual turnover of between $75,000 and $50 million (inclusive) for the year ended 30 June 2020; and
• lodge other supporting documents as required to demonstrate that they meet the eligibility criteria.

Non Highly Impacted Industries

Businesses outside the ‘highly impacted industries list’ apply for any grant

• submit evidence that they experienced the required decline in turnover over a minimum 2-week period from 26 June 2021 to 26 July 2021 compared to the same period in June and/or July 2019 (see Section 5.4 for evidence required);
• declare they have eligible expenses for which no other government support is available. They will not be required to provide evidence of costs on application (e.g. invoices) but will need to keep evidence of costs for a possible future audit;
• declare their employee headcount at 13 July 2021;
• declare they will maintain their employee headcount as at 13 July 2021 for the period for which the business is receiving payments under this Grant and the JobSaver scheme;
• submit an Australian Income Tax Return (or Notice of Assessment) or other documentation to demonstrate their business had an aggregated annual turnover of between $75,000 and $50 million (inclusive) for the year ended 30 June 2020; and
• lodge other supporting documents as required to demonstrate that they meet the eligibility criteria.

Alternative Circumstances

Businesses that cannot demonstrate the minimum $75,000 aggregated annual turnover or the minimum decline in turnover should contact Service NSW as they may still be eligible to apply if they:

• were not operating for the full year to 30 June 2020 (e.g. they are a new business) but can demonstrate income consistent with $75,000 per annum over a shorter period prior to 26 June 2021, and they can demonstrate they have been significantly impacted by the Public Health Orders, or
• their turnover in June/July 2019 was not representative of their usual or average turnover (e.g. due to drought or bushfires) which is usually $75,000 per annum or more, and they can demonstrate they have been significantly impacted by the Public Health Orders.

Where a business operates through a trust structure, the applicant will be required to provide additional information to demonstrate an aggregated annual turnover of $75,000 or more is derived through the trust, as opposed to a business linked to a trust.

Service NSW can request a combination of the following documents to support its determination of eligibility:

• accountant’s letter
• prior BAS statements
• income tax declarations
• audited profit and loss statements
• receipts and invoices from purchases.

Businesses requiring assistance with their online application can contact Service NSW on 13 77 88.

Other Grants Available

1. Job Saver

Fortnightly payments to help maintain employee headcount (as at 13 July) and provide cashflow support to businesses.

How much

• Employing businesses: 40% of weekly payroll, with a minimum payment of $1,500 per week and a maximum payment of $10,000 per week.
• Non-employing business: $1,000 per week

Eligibility

• A revenue decline of 30% or more.
• Turnover between $75,000 and $50 million.

Applications open late July.

2. COVID-19 micro business grant

A fortnightly payment for businesses with a turnover between $30,000 and $75,000.

How much

• $1,500 per fortnight

Eligibility

• A turnover between $30,000 and $75,000.
• A revenue decline of 30% or more.
• Businesses that provide the primary income source for a person associated with the business.

Applications open late July.

How to Apply

1. Check you meet the eligibility criteria.
2. Have your documentation and evidence ready for uploading.
   Note: You cannot save and resume your application once you’ve started.
3. Select the ‘Apply online’ button.
4. Log in, or create your MyServiceNSW Account.
5. Select and verify your identity documents.
6. When your identity is verified, select ‘Continue’.
7. Confirm your personal details.
8. Enter your business details and answer the eligibility questions, then select ‘Next’.
9. Provide information about your decline in turnover and upload your supporting documentation, then select ‘Next’.
10. Enter your bank details, then select ‘Next’.
11. Review your application.
12. Check the declaration boxes.
13. Select ‘Submit’ to complete your application.

When you submit your application, you’ll receive a confirmation email with your application reference number. If you do not receive this email within 5 minutes after completing your application, please check your junk mail folder, and then call 13 77 88 if you’re still unable to locate the email.

After your application is received, it will be reviewed by Service NSW. They will contact you if they need additional information to support your application. If your application is approved, they will transfer funds to your specified bank account within 5 business days from the approval date.

If you’re not able to complete your application online, please call Service NSW on 13 77 88.