Business advice
and accounting

Our purpose is to help you on your journey as you grow. Learn more about our history, partners and purpose.

Our purpose is to help you on your journey as you grow. Learn more about our history, partners and purpose.

Your partners for Business Service and Advisory, Taxation, Audit, Fraud and Risk.

Whatever your business, industry or family office, from local or international institutions we bring extensive expertise.

We're one team with a purpose and passion for what we do. Learn about our culture and career opportunities available to you.

Uncovering insights, trends and inspiration to help business grow in an ever-changing world.

We are always looking for ways to engage and give back to our community.

Telephone: +612 9283 1666
Email: admin@esvgroup.com.au

Level 13, 68 York Street,
Sydney NSW 2000

Why us

Our purpose is to help you on your journey as you grow. Learn more about our history, partners and purpose.

What we do

Your partners for Business Service and Advisory, Taxation, Audit, Fraud and Risk.

Who do we help

Whatever your business, industry or family office, from local or international institutions we bring extensive expertise.

Work with us

We're one team with a purpose and passion for what we do. Learn about our culture and career opportunities available to you.

What we think

Uncovering insights, trends and inspiration to help business grow in an ever-changing world.

Working to give back

We are always looking for ways to engage and give back to our community.

Contact us

Telephone: +612 9283 1666
Email: admin@esvgroup.com.au

Level 13, 68 York Street,
Sydney NSW 2000

Some positive news, well for now

26 August 2021

by Karen Le and David Prichard

Larger businesses in the tourism, hospitality and recreation industries

The ServiceNSW website has just been updated to include the (initial?) rules regarding the extension of JobSaver to businesses with a turnover between $250 million and $1 billion in the tourism, hospitality and recreation industries.

The available funding and eligibility criteria apply to two different tiers (for the year ended 30 June 2020), this includes businesses with:

  • Aggregated annual turnover of more than $250 million and up to $500 million; and
  • Aggregated annual turnover more than $500 million and up to $1 billion.

A summary of the available funding and eligibility criteria is included below:

  Aggregated annual turnover thresholds
Criteria More than $250 million and up to $500 million More than $500 million and up to $1 billion
Available funding – 40% of weekly payroll at a maximum weekly payment of (refer below) $300,000 per week

 

$500,000 per week

 

Australian Business Number (ABN) Businesses must have an ABN and were operating in NSW on 1 June 2021
Decline in turnover due to the Public Health Order (refer below) 50% (presumably or more) 70% (presumably or more)
Relevant decline in turnover comparison period Over a minimum one-month period within the lockdown (commenced 26 June), compared to the same period in 2019 or another agreed period (no current guidance on this)
Maintain Employee Headcount Businesses are required to maintain their employee headcount from the day immediately prior to the month they first experienced the required decline in turnover while they continue to receive JobSaver payments.

Where headcount is not maintained, businesses must notify ServiceNSW.

Relevant industries (refer below) ServiceNSW have provided a separate list of ANZSIC industry codes Attachment D in relation to the expansion of the rules.

We note this differs to the existing list of ANZSIC codes in relation to highly impacted industries.

Additional details in relation to evidencing the support of eligibility and assessment is included on the ServiceNSW website JobSaver Attachment D

Observations

Our initial observations are below and given recent experience, we are certain that additional questions will come up as businesses begin to apply. We will continue to try and engage ServiceNSW to answer any questions or uncertainty you might have for your business.

  • Available funding – the weekly payment cap will be applied at the group level and not an entity level with one entity applying on behalf of the group e.g. the Designated Group Employer or Single Lodger for payroll tax purposes.
  • Fortnightly payments – payments will be backdated to the start of the month in which businesses first experienced the required decline in turnover on or after the commencement of JobSaver on 18 July 2021.
  • Eligible entities – the decline in turnover and weekly payroll is determined only in relation to eligible entities (i.e. those that fall into the relevant ANZSIC codes) where they are part of a group.

*This appears to conflict with the supporting information requirements which will include other ineligible entities (e.g. consolidated income tax returns). There is currently no guidance on how to treat such scenarios.

  • Evidence – whilst an accountant can provide a confirmatory letter, ServiceNSW advise that on submission applicants will be notified of what evidence is required. Clearly, a streamlined process is not envisaged here.  We anticipate as a minimum, monthly or periodical profit and loss statements will be required.
  • Manual Assessment – applications will be manually assessed by RevenueNSW not ServiceNSW (another step in the streamlined process) which is likely to lead to additional processing and waiting times for resolving issues in relation to particular applications given ServiceNSW is not assessing applications.

Should you have any further questions please reach out to your ESV Engagement Partner – we remain committed to helping our clients navigate this challenging time.