Small and medium sized packaging business in 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.
The funding comes as federal and NSW state governments make a raft of payments and allowances to small and medium sized businesses in Sydney impacted by the latest lockdown.
The new business support payment will be available to entities with an annual turnover between $75,000 and $50m, who can demonstrate the 30 per cent or more decline in turnover in an equivalent two week period from 2019.
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 is next week in Sydney. It will apply to all jurisdictions that become designated Covid hotspots from now on.
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.
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 New South Wales.”
The payment will be funded 50/50 by the NSW state and the federal governments, and 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.
Scott 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 even if they are still working. They can also apply for income tax relief, by reducing payment plans and varying installments.
The NSW state government is also making a one-off businesses ggrant available for entities that have suffered a significant drop in turnover in lockdown, the grants ranging from $7,500 to $15,000. Again go to the NSW Services website to access the support.
