2021 Covid-19 Business Grant

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The 2021 COVID-19 Business Grant (‘the Grant’) will provide cash flow support until the JobSaver scheme commences, to help cover business expenses for which no other government support is available.

Applications are now open and close at 11:59pm on 13 September 2021. To apply, visit Apply for the 2021 COVID-19 business grant and apply via your MyServiceNSW Account. If you do not already have a MyServiceNSW Account or have not linked your business to your existing profile then you will need to do so before applying.

Three different grant amounts are available depending on the decline in turnover experienced over a minimum 2-week period from 26 June 2021 to 17 July 2021, compared to the same period in 2019:

Tier 1 – $7,500 for a decline of 30% or more
Tier 2 – $10,500 for a decline of 50% or more
Tier 3 – $15,000 for a decline of 70% or more.

Eligibility

To be eligible for the grant, you must:

have an Australian Business Number (ABN) and were operating in New South Wales as at 1 June 2021;
have total annual Australian wages of $10 million or less as at 1 July 2020;
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;
have experienced a decline in turnover of 30% or more due to the Public Health Orders over a minimum 2-week period from 26 June 2021 to 17 July 2021 compared to the same period in June and/or July 2019;
maintain their employee headcount as at 13 July 2021 for the period for which the business is receiving payments under this Grant and the JobSaver scheme.

Evidence to Support Eligibility

If your business is on the highly impacted industries list and you are applying for $7,500 (tier 1) and $10,500 (tier 2) grants, you’ll be required to:

declare that you meet the eligibility criteria
provide details of your qualified accountant, registered tax agent or registered BAS agent
submit an Australian income tax return, Notice of Assessment or other documentation demonstrating the business had an aggregated annual turnover between $75,000 and $50 million (inclusive) for the year ended 30 June 2020
lodge other supporting documents as required to demonstrate you meet the eligibility criteria

If your business is on the highly impacted industries list and you are applying for $15,000 (tier 3) grant, to receive the full amount, in addition to above, you must submit evidence that you experienced the relevant decline in turnover in the specified period. See the guidelines for more information.

Where evidence is required to show total annual Australian wages, and decline in turnover, this will be in the form of a letter from your qualified accountant, registered tax agent or registered BAS agent

If your business is not on the highly impacted industries list, you must:

declare that you meet the eligibility criteria
submit evidence that you experienced the relevant decline in turnover in the specified period
submit an Australian income tax return, Notice of Assessment or other documentation demonstrating the business had an aggregated annual turnover between $75,000 and $50 million (inclusive) for the year ended 30 June 2020
lodge other supporting documents as required to demonstrate you meet the eligibility criteria.
To show evidence of this decline in turnover, you’ll need to submit a letter from a qualified accountant, registered tax agent or registered BAS agent, using the template provided.

Frequently Asked Questions (FAQs)


What is aggregated annual turnover?	Aggregated annual turnover is the sum of the following: Your annual turnover for the income year The annual turnover of any entity connected with you, for that part of the income year that the entity is connected with you The annual turnover of any entity that is an affiliate of yours, for that part of the income year that the entity is affiliated with you
What is Decline in turnover?	To measure the decline in turnover, the Australian Taxation Office Goods and Services Tax (GST) concept will be applied when assessing whether an applicant experienced a 30% or more decline in national turnover. This means you use your GST accounting method (cash or accruals) to determine your turnover for the relevant periods.
What is Employee Headcount?	Employee Headcount means 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.
What does it mean to maintain employee headcount?	Maintaining employee headcount means maintenance of the employer-employee relationship consistent with employment law. Employers will, however, remain eligible if employees voluntarily resign.
What about businesses operating in New South Wales with their ABN registered elsewhere?	They will be able to apply if they can provide evidence their business was operating in New South Wales as at 1 June 2021. Evidence to demonstrate this includes commercial rates notices or lease agreements. Where a rates notice or lease agreement is not available, Service NSW may accept a combination of the following: Utility bills, insurance papers, supply invoices, registration papers, contractor licences
Businesses that cannot demonstrate the minimum $75,000 aggregated annual turnover or the minimum decline in turnover	These businesses may still be eligible to apply if they: were not operating for the full year to 30 June 2020 (e.g. they are a new business) but can demonstrate income consistent with $75,000 per annum over a shorter period prior to 26 June 2021, and they can demonstrate they have been significantly impacted by the Public Health Orders, or their turnover in June/July 2019 was not representative of their usual or average turnover (e.g. due to drought or bushfires) which is usually $75,000 per annum or more, and they can demonstrate they have been significantly impacted by the Public Health Orders
If a business does not submit a BAS to the Australian Tax Office?	The business should contact Service NSW to discuss further
Business needing help with their MyServiceNSW Account.	Business needing help with their MyServiceNSW Account. Businesses requiring assistance with their online application can contact Service NSW on 13 77 88

As always if you have any additional questions or if we can be of assistance in determining your eligibility, collating the financial information required to support your application or providing the accountants letter required please do not hesitate to contact us.

Please note that as this support is being administered by the NSW Government we cannot act as your agent and attend to the application on your behalf.

The information contained on this website and in this article is general in nature and does not take into account your personal situation. You should consider whether the information is appropriate to your needs, and where appropriate, seek professional advice from a financial adviser. Taxation, legal and other matters referred to on this website and in this article are of a general nature only and are based on our interpretation of laws existing at the time and should not be relied upon in place of appropriate professional advice. Those laws may change from time to time.

Published on July 21, 2021 by Progue

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Eligibility

Evidence to Support Eligibility

Frequently Asked Questions (FAQs)

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