The NSW State Government 2021 COVID-19 Micro-Business Grant provides cashflow support to a small business, sole trader, or not-for-profit organisation in NSW who have had their work impacted by the restrictions while continuing to incur business costs. Eligible businesses will receive a fortnightly payment of $1,500.
A micro-business has aggregated annual turnover between $30,000 and $75,000.
For the initial application, eligible businesses need to nominate the 2 week period where they first experienced the required decline in turnover, on or after 26 June 2021. Payments will be made in arrears once approved for the nominated fortnight.
Applications close at 11:59 pm on 18 October 2021.
We set out below general information on the NSW 2021 COVID-19 Micro-Business Grant:
Use of the Grant
Eligible businesses can use the grant for business costs incurred due to the public health order in NSW and where no other government support is available, including:
- • Salaries and wages
- • Utilities and rent
- • Financial, legal or other advice
- • Marketing and communications
- • Perishable goods
- • Other business costs.
To be eligible, businesses must satisfy the below criteria:
- Have an active Australian Business Number (ABN).
- Be operating in NSW on 1 June 2021.
- Had aggregated annual turnover between $35,000 and $75,000 for the year ended 30 June 2020.
- Have business costs where no other government support is available.
- Experienced a decline in turnover of 30% or more due to the public health order over a minimum 2 week period within the period of restrictions which commenced on 26 June 2021, in comparison to:
- • The same period in 2019; or
- • The same period in 2020; or
- • 2 weeks immediately prior to any restrictions of 12 June to 25 June 2021 (inclusive).
- Not applied for 2021 COVID-19 business grant or the JobSaver payment.
- If the business employs staff, must maintain employee headcount from 13 July 2021 while receiving these payments.
- If the business does not employ staff, your primary income source (50% or more of total income) must come from the business.
Eligible businesses will receive a fortnightly payment of $1,500.
Businesses can apply through the Service NSW website.
As a minimum, applicants will require:
- • MyServiceNSW account
- • Proof of identity
- • ABN / ACN
- • Business bank account details
- • Business Activity Statement (BAS)
- • Australian income tax return
Reconfirming Eligibility Requirements
The NSW 2021 COVID-19 Micro-Business Grant has been extended due to the continuation of the lockdown under the NSW Public Health Orders. For the fortnight 13 to 26 September 2021 and onwards, recipients will need to reconfirm their eligibility every fortnight to continue receiving payments.
To continue to be eligible, businesses will need to submit the form through their MyServiceNSW account online.
Recipients will need to confirm the following:
- The business is maintaining the employee headcount declared on the original application (if an employing business).
- The business has continued to experience a decline in turnover of 30% or more, compared to the applicable comparison period.
There are 3 options for the comparison period:
a. Option 1 – use the same year as the original application but the corresponding fortnight as the current eligibility period.
b. Option 2 – use the same comparison period and year that you used in your initial application.
c. Option 3 – If 12 June to 25 June 2021 was the comparison period used in the original application, the business must use this period when reconfirming eligibility.
The option chosen for the fortnight 13 to 26 September 2021 will need to be used for all future fortnights.
The new rules may result in businesses being eligible in some fortnights and not others.
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.