NSW Government has introduced a COVID-19 support grant, worth up to $10,000, for eligible NSW small business owners

This grant supports the operation of businesses highly impacted by the COVID-19 pandemic following the NSW Public Health Order of 31 March 2020.

financial assistanceHighly impacted industries include:

  • retail trade 
  • accommodation and food service 
  • rental, hiring and real estate services 
  • administrative and support services, and
  • arts and recreation services.

The grant may only be used for unavoidable business expenses that are not supported by other government funding. 

The eligible expenses include:

  • utilities
  • council rates
  • phone and internet
  • insurance premiums
  • professional advice
  • wages for employees not eligible for JobKeeper payments
  • franchise fees, and
  • paying creditors on closure of the business.

To be eligible for the grant, small business owners and non-profit organisations need to have:

  • between 1 and 19 employees, and an annual turnover of more than $75,000
  • total Australian wages below the 2019/20 NSW payroll tax threshold of $900,000
  • an Australian Business Number (ABN), based in NSW and employ staff as at 1 March 2020
  • a decline in turnover of 75% or more, compared to the equivalent period in 2019, and
  • unavoidable costs for which there are no other NSW or Commonwealth Government measures to support, ie the grant cannot be used to pay wages for staff eligible for JobKeeper.

How to apply
In order to apply for the grant, the applicant needs:

  • a MyServiceNSW account to access the online form
  • proof of identity information, such as driver's license and Medicare card details
  • a valid ABN or Australian Company Number (ACN), along with the business banking details, and
  • to provide the latest Business Activity Statement (BAS).

Part of the application is a declaration that all the eligible criteria have been met. This includes the business owner stating that a decline in turnover of at least 75% has occurred compared to the same two-week period in 2019.

Collins Hume will need to provide a letter on behalf of our client where they are not in one of the highly impacted industries. This letter will need to state that the business can still demonstrate that a 75% reduction in turnover has occurred compared to 2019.

Client communication
NSW small and medium businesses adversely affected by the COVID-19 pandemic should apply for the grant. The grant will provide immediate cash flow relief for businesses that have to pay for expenses that are not eligible for other government funding. The application for the grant is currently open, and eligible businesses can possibly receive funding within five days of application.

It must be noted that although the grant can provide cash flow relief, it has to be used only for the prescribed purposes of paying for eligible expenses. There may be an audit in the future, and grant recipients may have to provide evidence that the funds have been used accordingly. Hence, it is a requirement for documentary evidence related to the application to be kept for a minimum of five years.

Contact Collins Hume on 02 6686 3000 about any questions you have about Federal and State Government stimulus measures. Also watch our website for further COVID-19 updates.

Source: Wolters Kluwer CCH