BDO Welcomes Federal & State Government Support Package for Greater Sydney & NSW
BDO Welcomes Federal & State Government Support Package for Greater Sydney & NSW
BDO’s Sydney Office Managing Partner, Grant Saxon, said the economic support measures are much needed.
“NSW had seen a strong economic rebound prior to this latest lockdown, which was contributing to the overall resilience of the national economy. As the largest economy in the country, any COVID induced slowdown has implications not only for the state but the broader Australian economic recovery,” Grant said.
“We got through last year off the back of strong federal government support and business confidence was rebuilt quickly.
“This time there has been no JobKeeper payment to help SMEs with their cashflow so the impact has been swift and brutal. Hopefully, with this new support, businesses and sole traders will be able to get through the next few difficult weeks.”
The support measures, which are jointly funded, include payments for individuals, sole traders and businesses.
Individual Payments
Loss of work relief payments for individuals, no matter what classification, part-time or casual, from week four of the stay-at-home orders:
- A loss of eight to 20 hours - $375 per week.
- A loss of more than 20 hours - $600.
The NSW Government will cover the payment for regional NSW whilst the Federal Government will cover for Greater Sydney.
Business Relief Measures
a) Support Payments
- The new business support payment will be available to entities with an annual turnover between $75,000 and $50 million who can demonstrate a 30 per cent decline in turnover.
- Entities must maintain their full-time, part-time and long-term casual staffing level as of July 13, 2021 to be eligible.
- For sole traders, payments of $1,000 per week and for businesses, including not-for-profits, payments of $1,500 to $10,000 based on payroll.
b) Small Business Grants
- NSW small businesses with annual wages up to $10 million will be able to access small business grants between $7,500 and $15,000. A new grant program has also been introduced for smaller micro businesses with turnover between $30,000 and $75,000.
c) Payroll Tax
- Payroll tax waivers of 25 per cent for businesses with Australian wages of between $1.2 million and $10 million that have experienced a 30 per cent decline in turnover
Further information at: https://www.nsw.gov.au/media-releases/major-new-covid-19-support-package-to-help-tens-of-thousands-of-businesses-across