The NSW Government has recently announced a number of stimulus packages relating to payroll tax waivers and deferrals for both medium and large businesses. Acknowledging that small businesses with no payroll tax liability cannot access these benefits, the NSW Government has today (3 April) announced a grant of $10,000 for small businesses.
Further details will become apparent in coming days, however the announced eligibility for businesses to access this grant is as follows:
- Have between 1-19 employees and a turnover exceeding $75,000;
- Have a payroll which doesn’t exceed the current NSW payroll tax threshold of $900,000;
- Possess an ABN at 1 March 2020;
- Be highly impacted by the Public Health Order released by NSW Health on 30 March 2020 – we note that the term “highly impacted” has not been defined as yet;
- The grant funds must be used for unavoidable business costs – examples given in the announcement include utilities, overheads, legal costs and financial advice; and
- Provide appropriate documentation upon application – we expect there to be further guidance on this, whether it be proof of reduction in revenue, or whether being in a particular industry will be sufficient for eligibility purposes (e.g. forced closures of pubs and clubs).
Applications must be made for the grant (ie not automatic) and will be required to be lodged through Service NSW. These grants will become available within the fortnight and remain open until 1 June 2020.
We are staying abreast of all updates from both the State and Federal Governments, so that when these stimulus packages are introduced as law, you will be armed with the necessary information to make suitable decisions for your business.
If you have any questions regarding eligibility, application processes or how the payments will be made and how to properly account for them to avoid future issues please contact your ESV Engagement Partner on 9273 1666 we are here to help.