The NSW Government has introduced the Covid-19 JobSaver payment to provide cashflow support to impacted businesses to help them maintain their NSW employee headcount on 13 July 2021. The primary objective of the payment is to help businesses to survive, maintain relationships with their employees and be in a position to trade when restrictions are lifted.

What is it?

Eligible businesses (including sole traders) and not-for-profit organisations will receive fortnightly payments backdated to cover the cost incurred from week 4 of lockdown (from 18 July onwards).

Payments

Eligible businesses (including sole traders) and not-for-profit organisations will receive the equivalent of 40% of Weekly Payroll for work personnel in NSW:

The minimum payment will be $1,500 per week, and

The maximum payment will be $10,000 per week

Non-employing businesses may be eligible for payments of $1,000 per week.

The weekly payroll will be determined by referring to the last Business Activity Statement (BAS) lodged with the Australian Taxation Office (ATO) prior to 26 June 2021. For most clients this will be their March 2021 BAS or May 21 BAS (if you report GST monthly). The W1 figure must then be used to derive the ‘weekly payroll’.

Eligibility Criteria

The eligibility criteria is very similar to that of the 2021 Covid-19 Business Grant;

Have an ABN at as 1 June, 2021.

Had national aggregated turnover of between $75,000 and $50M for the year ended 30 June, 2020.

Have experienced a decline in turnover of 30% or more due to lockdown over a minimum 2 week period from 26 June 2021 to 30 July 2021 when compared to the same period in 2019 (this may be extended should lockdown be extended).

Maintain employee headcount as at 13 July, 2021.

For non-employing businesses (i.e. sole traders with no employees), the sole trader business must be your main source of income (not a business on the side).

Employees can receive Commonwealth Covid-19 Disaster Payments even if their employer is receiving JobSaver.

Businesses that have applied and are eligible for the 2021 Covid-19 Business Grant will generally be automatically eligible for JobSaver but must provide additional information.

How funding may be used

The JobSaver payment will help eligible businesses to cover their business costs incurred from 18 July 2021. 

These costs may include, but not limited to the following expenses

• utilities, wages and rent;
• financial, legal or other advice to support business continuity planning;
• marketing and communications activities to develop the business;
• the cost of perishable goods that can no longer be used; or
• other activities to support the operation of the business.

When to apply

Applications are now open and close 18 October 2021.

What we will do

We will prepare the accountant’s letter that is required when applying.

In order to prepare this letter we will:

• review your general eligibility for the grant.
• review your turnover for the two week period, compared to the same period in 2019.
• review your staff headcount before and after 13 July 2021.
• Calculate your weekly payroll based on W1 reported on your BAS/IAS.
• Provide you with a copy of the BAS required with your application.

 
Whilst your Service NSW application may not require an accountant’s letter for your industry; this process will ensure that you are eligible and will provide you with the relevant financial information required in the application.
 
If you have already received an accountant’s letter from us (as you were already deemed eligible for 2021 Covid-19 Business Grant) we will provide you with a new accountant’s letter that includes details of your head count and weekly payroll figure.

Next Steps

Please contact us if you believe your business has seen a 30% or more decline in turnover.

Once we receive your email we will send you an engagement letter to carry out the work.

One you receive the accountant’s letter from us, you will need to apply for the grant through your Service NSW account.

Once you apply and are deemed eligible, your business will receive automatic fortnightly payments; you will not need to reply but will need to notify service NSW if you are not maintaining the number of employees you had on 13 July 2021.

Should you have any questions, please contact us. Please note we are currently receiving a high volume of calls and emails and will get in contact with you as soon as possible.

Please click here if you missed our email regarding the 2021 NSW Covid-19 Business Grant