Jul 20, 2021

New COVID-19 Government Support Package

The Federal and NSW State Government announced several new and modified support measures as part of their COVID-19 support package. The following summarises some of the key measures announced on 13 July 2021.

COVID-19 Disaster Payment

If your hours of work are reduced due to restrictions on movement relating to a compulsory lockdown you may be entitled to taxable COVID-19 Disaster Payments. This weekly payment will vary depending on the number of hours you’ve lost and the length of the lockdown as shown in the table below.

Hours of work lost

20 or less

20 or more

Weekly payment

Weeks of lost work: 2-3 weeks

$325

$500

 

Hours of work lost

8 to less than 20

20 or more

Weekly payment

Weeks of lost work: 2-3 weeks

$375

$600

See Services Australia COVID-19 Disaster payment for more information and how to claim.

Pandemic Leave Disaster Payment

A taxable lump sum payment of $1,500 is available if you cannot work due to self-isolation or quarantine obligations relating to COVID-19 restrictions. This lump sum payment is available for each compulsory 14-day period of self-isolation or quarantine.

See Treasury’s Pandemic Leave Disaster Payment fact sheet for more details and eligibility.

Small and Medium Business Support Payments

If you have an eligible small or medium business, with turnover between $75,000 and $50,000,000, you will receive 40% of your NSW payroll payments. The minimum payment will be $1,500 per week, with a maximum of $10,000 per week, paid fortnightly based on turnover.

To be eligible, your business must experience a reduction in turnover of at least 30% compared to an equivalent two-week period in 2019.

In addition, your business is required to maintain your full time, part time and long-term casual staffing level as of 13 July 2021.

The payment for sole traders is set at $1,000 per week.

To register your interest, visit www.service.nsw.gov.au.

See NSW COVID-19 Support Package media release for more information. 

NSW Business Grants

2021 COVID-19 Business Grant

The NSW Government will also provide business grants to businesses with wages up to $10,000,000 per annum who are impacted by the Greater Sydney COVID-19 restrictions.

A maximum grant of up to $15,000 is available to cover the first three weeks of restrictions where there has been a 70% decline in turnover during the restrictions.

Smaller grants are available for smaller reductions in turnover. The grant is available to businesses including sole traders and not-for-profit organisations.

There are three grant categories:

  • $7,500 for a decline of 30% or more
  • $10,500 for a decline of 50% or more
  • $15,000 for a decline of 70% or more

You can register your interest now and apply from 19 July 2021. Click here.

New Grants Program for Micro Businesses

In addition, businesses with a turnover of between $30,000 - $75,000 will receive a fortnightly payment of $1,500 during restrictions. To be eligible your business turnover must decline by 30%.

The Commonwealth Government announced that these additional support payments would be tax-free.

See NSW Government announcement for more information on other additional support.

 

Disclaimer

The information provided is general in nature. It has been prepared without taking into account any of your individual objectives, financial situation or needs. Before acting on this information you should consider the appropriateness of the information, having regard to your own objectives, financial situation and needs. This publication is prepared by IOOF for: Bridges Financial Services Pty Limited ABN 60 003 474 977 AFSL 240837, Consultum Financial Advisers Pty Ltd ABN 65 006 373 995 AFSL 230323, Financial Services Partners Pty Ltd ABN 15 089 512 587 AFSL 237 590, Lonsdale Financial Group Ltd ABN 76 006 637 225 AFSL 246934, Millennium3 Financial Services Pty Ltd ABN 61 094 529 987 AFSL 244252, RI Advice Group Pty Ltd ABN 23 001 774 125 AFSL 238429, Shadforth Financial Group Ltd ABN 27 127 508 472 AFSL 318613 (‘Advice Licensees’). This publication is not available for distribution outside Australia and may not be passed on to any third person without the prior written consent of the Advice Licensees. These measures may be subject to change by the relevant Government and or regulatory authority(ies) without notice and, accordingly, may not be as represented here as at this date of publication. Also the information is based on our understanding of the proposed changes as at the date of issue of this document. Accordingly, you must not do or refrain from doing anything in reliance on this information without obtaining suitable professional advice.