Lockdown Support for Business Owners

Lockdown support for business owners

Lockdown Support for Business Owners

This week, Nathan presents us with all the information we need to know regarding the current 2021 COVID lockdown and the grants available to business owners. If you’re In a situation where COVID has Impacted your business, the information below will help you understand the grants before applying.

Service NSW will deliver the grant on behalf of the NSW Government consistent with policy settings administered by NSW Treasury. By applying for any of the grants, businesses agree that their application may be subject to an audit by the NSW Government or its representatives and agree to participate in the process if required.

2021 COVID-19 BUSINESS GRANT:

You can apply from 19 July 2021 till 11:59pm 13 September 2021 and apply online with Service NSW at www.service.nsw.gov.au

What is the Business Grant?

This COVID-19 Business grant is for business including both Sole Traders and Not-for-profits.

Depending on the percentage of decline in turnovers of your business will determine whether your one-off grant is $7,500, $10,500 or $15,000 (watch our video for tables and graphs on these numbers).

However, it’s important to remember that only eligible businesses may receive one grant tier and that only one grant is available for a single ABN.

The grant covers cost for the following business cost:

  • Utilities, wages and Rent
  • Financial, legal and other Advice to Support your business
  • 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.

In addition, certain entities, such as those earning passive income (rents, interest or dividends), government agencies, local governments, banks, and universities are not eligible for this Grant. This also includes a company in liquidation, individual in bankruptcy or a sovereign entity. Multiple businesses under a single ABN are only eligible for one grant.

What is the Eligibility Criteria?

  • Have an active Australian Business Number (ABN)
  • Demonstrate your business was operating in NSW as of 1 June 2021
  • Have had total annual Australian wages of $10 million or less as of 1 July 2020
  • Have had an aggregated annual turnover between $75,000 and $50 million (inclusive) for the year ended 30 June 2020
  • Have business costs for which there is no other government support available
  • Maintain your employee headcount as of 13 July 2021.
  • Maintaining employees – definitions
  • Maintain their employee headcountmeans maintenance of the employer-employee relationship consistent with employment law. Employers will, however, remain eligible if employees voluntarily resign.
  • Employee headcountmeans the number of persons who are employed in New South Wales and who are permanent (full-time or part-time), or casual staff that have been employed by the business for more than 12 months.

 

Information needed when you apply:

Applying for the grant will depend on If your business Is In a Industry that Is highly Impacted or not.

Examples of Highly impacted industries include Hospitality, Recreation services, Retail, Transport, Education & Training (Full list of highly impacted industries can be found at Service NSW website).

For those businesses listed as highly Impacted Industry:

Work out which tier you fit into. Tier 1 (30% decline, $7,500 grant), Tier 2 (50% decline, $10,500 grant) or Tier 3 (70% decline, $15,000 grant).

When you apply, you will need to supply:

Tier 1 and 2

  • Employee headcount on 13 July 2021
  • Declare you are maintaining the employee headcount advised
  • Provide details of your qualified accountants (CPA, CA or IPA), registered Tax agent or registered BAS agent details
  • Provide a soft copy (i.e., PDF) of your 2020 Tax Return, Notice of Assessment or other documentation to demonstrate your business has a turnover of $75,000 and $50 Million, for the year ended 30 June 2020

For Tier 3 grant, you will also need to provide:

  • Everything mentioned above as per Tier 1 and 2
  • Your qualified Accountant (CPA, CA, IPA), Tax Agent or BAS agent to provide a letter confirming that you fit the eligibility criteria showing annual wages and the decline in turnover.

For those who are not In a high Impacted Industry, all three tiers you will need to supply:

  • Employee headcount on 13 July 2021
  • Declare you are maintaining the employee headcount advised
  • Provide details of your qualified accountants (CPA, CA or IPA), registered Tax agent or registered BAS agent details
  • Provide a soft copy (i.e., PDF) of your 2020 Tax Return, Notice of Assessment or other documentation to demonstrate your business has a turnover of $75,000 and $50 Million, for the year ended 30 June 2020
  • Your qualified Accountant (CPA, CA, IPA), Tax Agent or BAS agent to provide a letter confirming that you fit the eligibility criteria showing annual wages and the decline in turnover.

 

JobSaver Business Support:

You can apply from late July 2021 and most likely till the lockdown finishes – more details to follow.

Apply online with Service NSW at www.service.nsw.gov.au

What is the business support?

This COVID-19 Business grant is for business including both Sole Traders and Not-for-profits.

A cashflow payment between a minimum of $1,500 and maximum of $10,000 per week based on 40% of the NSW payroll payments of your business.

If you’re a non-employing business you will be eligible for $1,000 per week. The cashflow support will cease when lockdown restrictions are eased or when the Commonwealth hotspot declaration is removed.

What is the Eligibility Criteria?

  • Be a business that has a turnover of $75,000 and $50 Million
  • Demonstrate a 30% decline in turnover
  • Maintain your full time, part time and long term casual staffing level as of 13 July 2021

Details on Service NSW website are limited, and it is subject to more details being released.

 

Micro Business Grant:

You can apply from late July 2021 and most likely till the lockdown finishes – more details to follow.

Apply online with Service NSW at www.service.nsw.gov.au

What is this Business Grant?

Micro Businesses could be company or trust, but most likely Sole Traders.

A grant payment provides $1,500 per fortnight while lockdown restrictions apply.

What is the Eligibility Criteria?

  • Be a business that has a turnover of between $30,000 and $75,000.
  • Demonstrate a 30% decline in turnover
  • Businesses that provide the primary income source for a person associated with the business.

Details on Service NSW website are limited, and it is subject to more details being released.

 

Non-Financial Support:

Support goes beyond just financial grants, the mental wellbeing of ourselves, our friends and family during lockdown should also be something to take note of. The Impact of covid 19 and the result of lockdowns will have a different Impact for everyone, so Its Important to understand the signs of mental Illness, stress or other Impacts that could lead to a mental health crisis.

ALGEE Is an acronym used to help remind us of the actions that should be taken to help someone going through a mental health Crisis.

The ALGEE action plan is:

  • Approach, assess and assist with any crisis – assess the risk of suicide or harm and look for signs of trauma and high anxiety.
  • Listen to the person non-judgmentally.
  • Give the person reassurance, support and information.
  • Encourage the person to seek appropriate professional help.
  • Encourage the person to seek self-help and other support strategies.

Unlike other emergency action plans, the tasks that make up the ALGEE action plan DO NOT have to be done in sequence. You can assess the risks, give reassurance, and listen without judgment, all at the same time.

Signs of stress that may lead to a Mental Health Crisis Include:

  • Feelings of fear, anger, sadness, worry, numbness, or frustration
  • Changes in appetite, energy, desires, and interests
  • Difficulty concentrating and making decisions
  • Difficulty sleeping or nightmares
  • Physical reactions, such as headaches, body pains, stomach problems, and skin rashes
  • Worsening of chronic health problems
  • Worsening of mental health conditions
  • Increased use of tobacco, alcohol, and other substances

Prevention to mental health can be easily done by Implementing the following activities, which can help reduce stress and possible mental health crisis:

  • Take care of your Body
    • Meditate
    • Eat healthy
    • Sleep when you need to sleep
    • Reduce excessive alcohol, tobacco and substance abuse
  • Make time to unwind
  • Connect with others: talk on the phone or zoom if you can’t do it in person
  • Connect with community organisations, local clubs or networking groups

It’s Important that If you do know someone going through a mental health crisis, that you’re not there to treat or solve the Illness, rather help Identify and provide support. Providing support can be as simple as listening, giving Information and encouraging professional help be sought.

The best professional support can start with a GP or not for profit groups like Beyond Blue, RU OK and Lifeline. We’ve shared the details with those support organisations:

Beyond Blue; Phone 1800 512 348 or https://coronavirus.beyondblue.org.au/

RU OK?; resources can be found at https://www.ruok.org.au/

LifeLine: Phone 13 11 14 or https://www.lifeline.org.au/