COVID-19 UPDATE

GOVERNMENT ANNOUNCEMENTS

 FOR

YOU AND SMALL/MEDIUM BUSINESSES

COVID-19 UPDATE - 19.07.2021

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Dear Valued Clients,

 

In light of the current announcements and information surrounding COVID-19, we are making some changes to ensure the health and safety of our most valued clients.

 

We have continued our operation in full force working remotely. We encourage all of our clients to contact us as usual via phone or email. Please contact your accountant should you wish to book a meeting via Zoom or Microsoft Team Conferencing.

We have summarised all the announcements from the Government and States that may be applicable to you:

 

PLEASE TAKE THE TIME TO READ BELOW BEFORE CONTACTING US FOR FURTHER QUESTIONS.

COVID-19 Business Grant – 26 June 2021 to 18 July 2021 

Available to apply from 19 July 2021 

 

What you get: 

  1. $7,500.00 for a turnover reduction of 30% or more 

  1. $10,500.00 for a turnover reduction of 50% or more 

  1. $15,000.00 for a turnover reduction of 70% or more 

Grant is tax free 

 

Eligibility Criteria 

  1. Must have an ABN 

  1. Pay less than $10million in wages (grouping provisions) 

  1. Turnover between $75,000.00 and $50million for 2020 financial year 

  1. Have business costs for which there is no other support available  

  1. Have experienced at least a 30% decline in turnover for a 2 week period between 26 June 2021 and 26 July 2021, compared to the same 2 week period in 2019 

  1. Maintain employee headcount as at 13 July 2021 

 

If a business is on the Victorian border, the two week period is calculated for the period 27 May 2021 to 26 July 2021. 

 

How Funding may be used 

Money is to be used for business expenses including: 

  1. Utilities, wages and rent 

  1. Financial, legal or other support 

  1. Marketing and communications activities to develop the business 

  1. Cost of perishables 

  1. Other activities to support the operation of the business 

 

Evidence in support of eligibility 

  1. Declare the business experienced the relevant decline in turnover 

  1. Declare the business has eligible expenses for which no other grant is available 

  1. Declare the business’ employee headcount as at 13 July 2021  

  1. Declare the business will maintain its headcount for the period the business is receiving this grant and the JobSaver 

  1. Provide details of accountant, tax agent or bas agent 

  1. Submit 2020 Tax Return 

  1. Any other supporting evidence 

 

If you are applying for the $15,000.00 grant, you will also require a letter from your accountant, tax agent or bas agent confirming the above details. If this cannot be done, you will only receive $10,500.00. 

 

Alternative Tests 

  1. If business is registered in another state but trades in NSW, will be eligible if you can provide evidence business was trading in NSW as at     1 June 2021. 

 

  1. Business with less than $75,000.00 can still be eligible if: 

  1. They didn’t operate for the full 2020 year but can demonstrate income consistent with $75,000.00 over a shorter period prior to 26 June 2021 

  1. Turnover in 2019 was not representative of their usual or average turnover which is usually $75,000.00 or more 

  1. Need to contact Service NSW to discuss 

 

  1. If you do not submit a BAS, you must contact Service NSW to discuss 

 

  1. If business is trading from a trust, must prove that the income is derived from the trust, and not linked businesses to the trust 

 

  1. If the business is unable to provide any of the documents required, Service NSW may still accept an application based on other documentation but you would need to phone them on 13 77 88. 

 

JobSaver – from 19 July 2021 

Available to apply from 26 July 2021 

No official guidelines out at this stage 

 

What you get 

  1. Minimum $1,500.00 per week, maximum $10,000.00 per week 

  1. 40% of your total wages each week 

  1. If you are a non-employing business (sole trader etc), you receive $1,000.00 each week 

 

Eligibility Criteria 

  1. Must turnover between $75,000.00 and $50million 

  1. Must have a 30% drop in turnover 

  1. Must have staff on the books as at 13 July 2021 

 

Micro Business Grant – from 26 June 2021 

Available to apply from late July 

No official guidelines out at this stage 

 

What you get 

  1. $1,500.00 per fortnight 

  

Eligibility Criteria 

  1. Must turnover between $30,000.00 and $75,000.00  

  1. Must have a 30% drop in turnover 

 

COVID-19 Disaster Payment – week ending 4 July 2021 

Available now either through myGov or call 180 22 66 

 

What you get 

  1. $325.00 or $500.00 per week for weeks 1 & 2 

  1. $375.00 or $600.00 per week for weeks 3 and beyond 

 

Other Info 

  1. Amounts are taxable and you can ask Services Australia to withhold tax so you don’t get a large bill when doing your tax return next year 

  1. Only need to apply once 

  1. If you find a job or go back to work, you must cancel the payment with Services Australia 

 

Eligibility Criteria – Parts of Sydney 

Week 1 – 1 July 2021 to 7 July 2021 

$325.00/week 

$500.00/week 

Must have lost  8 – 20 hours of work per week or at least 1 full day of usual work hours 

Must have lost over 20 hours of work per week 

Must have less than $10,000 in liquid assets 

Must have less than $10,000 in liquid assets 

Must be located in certain LGA 

Must be located in certain LGA 

 

Week 2 – 8 July 2021 to 14 July 2021 

$325.00/week 

$500.00/week 

Must have lost  8 – 20 hours of work per week or at least 1 full day of usual work hours 

Must have lost over 20 hours of work per week 

Must be located in certain LGA 

Must be located in certain LGA 

 

Week 3 – 15 July 2021 onwards 

$375.00/week 

$600.00/week 

Must have lost  8 – 20 hours of work per week or at least 1 full day of usual work hours 

Must have lost over 20 hours of work per week 

Must be located in certain LGA 

Must be located in certain LGA 

 

Eligibility Criteria – Greater Sydney 

Week 1 – 4 July 2021 to 10 July 2021 

$325.00/week 

$500.00/week 

Must have lost  8 – 20 hours of work per week or at least 1 full day of usual work hours 

Must have lost over 20 hours of work per week 

Must have less than $10,000 in liquid assets 

Must have less than $10,000 in liquid assets 

Must be located in certain LGA 

Must be located in certain LGA 

 

Week 2 – 11 July 2021 to 17 July 2021 

$325.00/week 

$500.00/week 

Must have lost  8 – 20 hours of work per week or at least 1 full day of usual work hours 

Must have lost over 20 hours of work per week 

Must be located in certain LGA 

Must be located in certain LGA 

  

Week 3 – 18 July 2021 onwards 

$375.00/week 

$600.00/week 

Must have lost  8 – 20 hours of work per week or at least 1 full day of usual work hours 

Must have lost over 20 hours of work per week 

Must be located in certain LGA 

Must be located in certain LGA 

 

Payroll Tax Deferral 

  1. Deferral for 2021 payroll tax year to 7 October 2022 with 12 month interest free payment plans available 

  1. Deferral for July and August payments to 7 October 2022 with 12 month interest free payment plans available 

 

Payroll Tax Concession 

  1. If the business has suffered a 30% turnover decline, they can receive a 25% concession for the 2022 payroll tax year 

 

Commercial Tenancy Rules 

  1. The landlord is unable to evict or lockout any tenant without first conducting mediation if the tenant is eligible for any of the grants 

  1. If tenant is eligible for any of the grants and the landlord agrees to reduce their rent between now and 31 December 2021, the landlord will obtain a 2021 land tax concession by the amount equal to the discount provided to the tenant 

 

Residential Tenancy Rules 

  1. If the tenant has at least a 25% reduction in their income and the landlord agreed to reduce the rent between now and 31 December 2021, the landlord can either: 

  1. receive a $1,500.00 cash payment; or 

  1. receive a 2021 land tax concession up to the amount of rent discounted 

Remember your health, well being and family are priority, be safe!

Kind Regards,

The Stratum Team