The NSW 2022 Small Business Support Program will provide cash flow support to help businesses survive the immediate impacts of the current Omicron wave of COVID-19.
Eligible businesses will receive a payment covering the four-week period of February 2022 (payments will not be received for January 2022).
Payments will be equivalent of 20 per cent of weekly payroll for work performed in NSW.
– The minimum payment will be $750 per week;
– The maximum payment will be $5,000 per week; and
– Eligible non employing businesses will receive $500 per week.
Eligibility Criteria
1. Businesses impacted by COVID-19 will be eligible if they:
a) had an Australian Business Number (ABN) and were operating in New South Wales on 1 January 2021;
b) had an aggregated annual turnover of between $75,000 and $50 million (inclusive) for the year ended 30 June 2021 or 30 June 2020 (must use the financial year for the Australian Tax Return most recently lodged with the ATO);
c) experienced a decline in turnover of 40 per cent or more due to the impacts of COVID-19 during the month of January 2022, compared to January 2021 or January 2020;
d) experienced a decline in turnover of 40 per cent or more due to the impacts of COVID-19 from 1–14 February 2022 compared to the same fortnight in February in the comparison year used for criterion (c) above;
e) Decline in turnover will be measured on the modified Goods and Services Tax (GST) turnover of the business; and
f) maintain their employee headcount from 30 January to 28 February 2022.
2. Businesses must have experienced a decline in turnover due to COVID-19 which has, for example, impacted the business through reduced consumer demand, labour shortages and supply chain disruptions. Businesses that have experienced a decline in turnover for other reasons, such as seasonal variations, or the business closing for the holiday period or for renovations, are ineligible.
3. Certain entities (for example entities primarily earning passive income (rents, interest, or dividends), government agencies, local governments, banks and universities) are not eligible for the Small Business Support Program. The full list of ineligible businesses is in Attachment B.
4. Where the annual turnover of non-employing businesses is aggregated with employing business(es) for the purpose of calculating aggregated annual turnover, the non-employing businesses are ineligible to apply.
5. For non-employing businesses, the business receiving payments must be the primary income source (i.e. 50 per cent or more of total income) for the associated individual. Where an individual is associated with more than one non-employing business, only one of the businesses (with whom that individual is associated) may claim payment.
6. Commonwealth Pandemic Leave Disaster Payment can be received by employees if their employer is receiving payment under the Small Business Support Program.
7. Non-employing businesses can also receive payment under the Small Business Support Program if individuals associated with and deriving income from the business receive a Commonwealth Pandemic Leave Disaster Payment for the same period.
8. Registered Charities are not eligible if they are receiving COVID-19 support from the NSW Department of Communities and Justice Social Sector Fund (SSSF).
Use of the support payment
An eligible business can use the payment to cover business costs and survive the immediate impacts of the Omicron wave of COVID-19 including (but not limited to):
– Salaries and wages
– Utilities and rent
– Financial, legal or other advice
– Marketing and communications
– Perishable goods
– Other Business Costs
Application Process
Businesses can apply through the Service NSW website. Applications open on 14 February 2022 and close after 11:59pm on 31 March 2022.
Documentation Required
1. ServiceNSW account
2. Employing businesses – declaration of employee headcount on 30 January 2022 and that the head count will be maintained from 30 January 2022 to 28 February 2022
3. Non-employing businesses – declaration that the business is the primary income source for the individual associated with the business (i.e. 50 per cent or more of total income)
4. Australian income tax return (other documentation may be submitted by registered charity applicants)
5. Evidence of how weekly payroll has been calculated
6. For businesses directly affected by the Public Health Order and listed at Attachment A:
– declaration of decline in turnover and
– identify how the Public Health Order has directly impacted the turnover of the business
7. For other businesses that meet the eligibility criteria but have ANZSIC codes not listed at Attachment A:
– BAS / IAS for January 2022 and January 2021/January 2022 or
– A letter from a qualified accountant, registered tax agent or registered BAS agent and
– Declaration of decline in turnover and
– Identify how COVID-19 has impacted the turnover of the business
Alternative Circumstances
Alternative rules are available for businesses that do not meet standard eligibility criteria for the 2022 Small Business Support Program payment.
The team at EMspire Advisory are trusted, qualified Chartered Accountants, tax agents, and small business accountants. We work closely with our clients to achieve the best possible outcomes. So, to find out more, please contact us!
Please note that this information is not specific and is general in nature and cannot be relied on as advice. Please contact us for advice specific to you and your circumstances. The legislation and eligibility criteria may change since the time of writing. Please refer to the Service NSW website for the most current information.