GOVERNMENT SUPPORT

AUGUST 2021 - SUPPORT PACKAGES ON OFFER (NSW & VIC)

4 August 2021

The state and federal governments have offered support packages to businesses across NSW and Victoria, as Sydney has extended its ongoing lockdown.

At both federal and state level, Governments have extended options for SMEs, with headline measures being the JobSaver booster and the 2021 COVID-19 Business Grant, both of which are welcome news to commercial finance brokers and an essential for our small business clients.

New South Wales has extended its lockdown for another four weeks (Commencing 28th July until 28th August 2021), with a commensurate increase in support for those forced to stop trading or curtail business as a result of the new restrictions.

For NSW SME clients the first step needed to fast-track any support payments is ensuring their business and contact details are up-to-date with the Australian Business Register. It is also encouraged NSW customers check their personal contact and business details are up-to-date in their MyServiceNSW Account and business profile. If any small business owner doesn’t have an account, they can create a MyServiceNSW Account and business profile.

NSW

The NSW and Federal governments have expanded the maximum payments available to businesses through the JobSaver program, after the state extended its lockdown by another four weeks, until 28 August.

• JobSaver payments will now be available to employing businesses with an annual turnover of between $75,000 and $250 million, up from the previous $50 million limit, which have experienced a revenue decline of 30 per cent or more.

• The maximum weekly payment has also been raised, with businesses that maintain their employee headcount now able to receive between $1,500 and $100,000 per week, up from the previous $10,000 maximum. Payments will be based on 40 per cent of their weekly NSW payroll.

• The expanded payment will now cover around 400,000 businesses, employing 3.3 million workers in NSW – adding up to 1,900 businesses with 300,000 employees more than before, according to the federal government.

The JobSaver program opened on Monday 26th July, payments are expected to hit bank accounts from 31 July. The government has told businesses that the new arrangements will be backdated, so that applicants that receive their first payment based on previous settings will see top-ups.

The latest round of assistance has built on the state government’s current support measures, including $4.1 billion committed earlier this month.

Businesses have been told they can expect to receive funds in their accounts within five to 10 business days from their approval date. Non-employing businesses, such as sole traders, remain eligible for a maximum payment of $1,000 per week. The NSW state government have extended the 2021 COVID-19 Business Grant to cover the first three weeks of lockdown.

Workers who have lost hours are also still eligible for the COVID-19 Disaster Payment, with more than 812,000 claims granted in NSW, totalling around $411 million in weekly payments.

VICTORIA

In Victoria, the state and federal governments have teamed up for a joint bundle targeting small and medium businesses affected by Melbourne’s recent lockdown.

The Victorian Business Support Package has committed an additional $400 million in support for businesses, with funding to be split between the Commonwealth and State Governments.

The package includes a new $85-million Small Business COVID Hardship Fund and a $156 million Business Continuity Fund, as well as support for commercial tenants and landlords.

• The Business Continuity Fund will deliver $5,000 grants to around 30,000 businesses that remain impacted by capacity limits, under public health restrictions.

• Twenty-four eligible sectors are covered by the fund, including gyms, cafes, restaurants, catering services and hairdressers.

Businesses located in the CBD of Melbourne will also be eligible to receive an additional $2,000, recognising reduced foot traffic due to restrictions on the number of staff allowed in office buildings.

All recipients must have received or have been eligible for the previous Business Cost Assistance Program.

Another facet of the support package is the Commercial Tenancy Relief Scheme and Landlord Hardship, which will be fully funded by the Victorian government.

• The two schemes will deliver $80 million in support to landlords that provide rent relief to tenants.

• Victoria will reinstate the Commercial Tenancies Relief Scheme to provide rent relief to SME tenants and their landlords. More details are set to be provided by the government.

Meanwhile, the $85 million Small Business COVID Hardship Fund will be established to support small businesses who have not been eligible for other existing business support funds.

• Small businesses with a payroll of up to $10 million who have experienced a 70 per cent or greater reduction in revenue will be eligible for grants of up to $5,000.

• The new package will also build on previous Victorian government support for licensed hospitality and alpine venues, with $70 million headed towards the Licensed Hospitality Venue Fund 2021 and $9.8 million for Alpine Business Support.

• Grants up to $20,000 are available under the Licensed Hospitality Venue Fund 2021, to support operations impacted by current restrictions.

• The grants supposedly recognise that larger venues depend on dine-in and have higher operating costs, so they will need more support than smaller operations.

• These businesses are also eligible for an additional $2,000 if they are based in the CBD. To receive the funding, venues must have received or have been eligible for the previous Business Cost Assistance Program.

• The Alpine Business Support program on the other hand has received $9.8 million boost to deliver grants between $5,000 to $20,000.

  • The support will go to 430 Alpine businesses, in an effort to make up for restricted inter and intrastate travel during the peak winter season.

  • The funding also includes an additional $5 million support to alpine resort operators and management boards.

The programs will be administered by the Victorian State Government.

To find out how me and my team can assist your business ring 0410 533 680 or contact me at

carla.r@quantumbusiness.com,au