NSW businesses to receive new support payments of up to $10,000 and payroll tax relief

nsw budget

NSW Treasurer Dominic Perrottet. Source: AAP/Dan Himbrechts.

The New South Wales and federal governments have announced a joint support package for businesses that includes new small business support payments, grants and payroll tax relief.

Under the new combined support package, businesses with an annual turnover between $75,000 and $50 million that suffer a 30% decline in turnover as a result of the current NSW lockdown can receive weekly payments between $1,500 and $10,000 based on the level of their payroll.

To receive the payment, eligible businesses and non-for-profits will be required to keep their full-time, part-time and long term casual staffing level consistent from July 13, 2021.

Sole traders will be eligible to receive $1,000 per week.

The new small business support payments, to be funded on a 50/50 basis by the Commonwealth and the NSW government, is expected to support up to 500,000 entities employing more than 3 million people.

NSW Treasurer Dominic Perrottet said an important part of the package is to ensure those businesses that access the payments do not reduce their headcounts.

“We want to keep as many workers in work during this period of time,” Perrottet said in a press conference on Tuesday afternoon. 

Additionally, the NSW government will expand its COVID-19 business grants program, allowing eligible businesses with a payroll of up to $10 million to apply.

“We will also be deferring all payroll tax liabilities for the next two months,” Perrottet said.

Businesses with a reduction in turnover of at least 30% and which ran a $10 million payroll will receive payroll tax waivers for the first quarter of this year.

Micro businesses that can prove their turnover has declined by 30% will also receive support, with payments of up to $1,500 per fortnight available to businesses with a turnover of less than $75,000 or greater than $30,000.

The NSW government will also offer support to commercial tenants and retail tenants.

“We will be mandating that there will be no lockouts, or evictions during this period of time, and for any rent reduction from landlords to their tenants […] we will provide a rebate or discount, in relation to land tax payable,” Perrottet said.

Finally, starting from the fourth week of a lockdown in an area declared a Commonwealth government hotspot, the COVID-19 Disaster Payment will increase to $600 per week for people who have lost 20 or more hours of work a week. People who lose between 8 and 20 hours of work a week will be eligible to receive weekly payments of $375. 

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