Small and medium-sized food and drink businesses affected by the current Sydney lockdown, whose turnover is more than 30 per cent lower than the same period in 2019, will be entitled to government business support of between $1500 and $10,000 a week for as long as lockdown lasts.
The new business support payment will be available to entities in a designated hotspot with an annual turnover between $75,000 and $50m, who can demonstrate turnover is 30 per cent or lower than the equivalent two week period in 2019. Those parameters will include many food and drink businesses in Sydney.
Eligible companies will receive payments of between $1500 and $10,000 per week, based on the level of their payroll. The level of funding will be 40 per cent of a company’s NSW payroll. The payments will kick in during week four of a lockdown, which for Sydney starts next week.
Businesses can claim for the payments from today 14 July, by registering with Service NSW, go to its website and follow the links.
Apart from showing the drop in turnover, the other main condition to receive the payment is that eligible businesses are required to maintain their full-time, part-time and long-term casual staffing to the same level as of 13 July this year.
The funding comes as federal and NSW state governments make a raft of payments to small and medium sized businesses in Sydney impacted by the latest lockdown.
Describing the new Covid Delta outbreak as “dangerous and severe” Prime Minister Scott Morrison said: "It is in the national interest that we now put in place a different set of arrangements with the states and territories. That will first be put in place here in NSW."
The payment will be funded 50/50 by the NSW state and the federal governments, will cost an estimated $500m a week. All the new business payments are tax exempt.
The new business support applies to all businesses in a designated Covid hotspot, which for now is metro Sydney, but which can be in any state or territory. Metro Sydney accounts for one quarter of Australia’s total GDP.
In addition, the NSW state government will “completely waive” payroll tax for the first quarter of the financial year to companies that have suffered a 30 per cent reduction in sales, and will defer all payroll liabilities for the next two months.
Morrison also said staff who have lost hours during lockdown can now claim up to $600 a week if they were full time, and up to $375 if they were working part time. They can receive the relief if they are still working. They can also apply for income tax relief, by reducing payment plans and varying installments.
Sydney businesses can also apply for an NSW state government business grant, which is for between $7,500 and $15,000, depending on the amount of turnover lost. Again go to the NSW Services website to register if it applies to you.
