NSW small business grants to ease hospitality and tourism pain

A major new stimulus package and adjustments to the Dine & Discover programme have been announced by the NSW government.

The package is designed to assist sole traders and small businesses affected by the snap two week lockdown that is currently in place forGreater Sydney, Blue Mountains, Central Coast, Wollongong and Shellharbour until 9 July.      

The package includes:

• Grants of between $5000 and $10,000 for small businesses, depending on annual turnover
• Payroll tax deferrals for all employers
• Extension Dine & Discover programme through August 2021
• More than $11 million for increased support for people at risk of homelessness
• Assistance to vulnerable temporary visa holders, asylum seekers and refugees
• An optional deferral of payroll tax payments due in July 2021 and the deferral of hotel June quarter gaming machine tax.

According to NSW Premier Gladys Berejiklian, the small company support grants

would minimise cash flow restrictions during this time. The stimulus support can assist businesses with expenses such as rent, utilities, and wages.

“We always said we would do whatever it takes to support businesses and keep people in jobs during the pandemic, and that is exactly what we are doing,” Ms Berejiklian said.

“The current restrictions are in place to protect people and keep the community safe, unfortunately, businesses continue to incur costs such as rent, power and lost productivity, and this will go some way to lessening that financial pain.”

According to NSW Treasurer Dominic Perrottet, the grants would be available for sole traders and non-for-profit organisations.

Expanded criteria will also assist most hospitality and tourism operators.

“The NSW economy rebounded strongly from the challenges of 2020, and we’re taking action to ensure we keep that going. We are deploying our fiscal firepower when it matters by helping small businesses stay in business and keep people in jobs,” Mr Perrottet said.

“Once again, we are delivering timely and targeted support to keep businesses in business and people in jobs as we work together to overcome this latest challenge.”

These grants will be available from 19 July 19. Businesses applying will need to prove their turnover declined across a minimum two-week period after the commencement of major restrictions on June 26.

Support grants

Three different grant amounts will be provided for small businesses by the state depending on the decline in turnover experienced during the lockdown:

• $10,000 for businesses who experience a 70% decline in revenue
• $7000 for businesses who experience a 50% decline in revenue
• $5000 for businesses who experience a 30% decline in revenue

Businesses must meet the eligibility requirements of the following two streams in order to receive funds:

Small Business COVID-19 Support Grant: 

• Businesses and sole traders with a turnover of more than $75,000 per year but less than the NSW Government’s 2020-21 payroll tax threshold of $1,200,000 as of July 1 2020, are eligible for such assistance.
•  These businesses must have fewer than 20 full-time equivalent employees, and an Australian Business Number registered in NSW or be able to demonstrate that they are physically located and primarily operating in New South Wales.

Hospitality and Tourism COVID-19 Support Grant: 

• Tourism or hospitality businesses that have an annual turnover of more than $75,000 and an annual Australian wages bill of below $10 million as of July 1, 2020, are eligible for this grant.
• This business must also have an Australian Business Number registered in NSW or be able to demonstrate they are physically located and primarily operating in New South Wales.

Irit Jackson, 30th June 2021