2021 COVID-19 Business Support
Simplifying 2021 COVID-19 JobSaver Payment!
The NSW Government will be providing support to businesses in NSW affected by the current Public Health Orders through two tranches of grants: the 2021 COVID-19 Business Grant and JobSaver. If you haven’t read our blog article summarising the 2021 COVID-19 Business Grant, you can do so here.
2021 COVID-19 JobSaver Payment
The 2021 COVID-19 JobSaver Payment (‘JobSaver‘) will help eligible businesses and not-for-profit organisations with business costs incurred from 18 July 2021. For business costs incurred during the Public Health Orders (‘PHO’) to 17 July 2021, financial assistance was provided through the COVID-19 Business Grant.
Applications for JobSaver opened on Monday, 26 July 2021 and will close at 11:59pm on 18 October 2021. If you’re late in applying for JobSaver not to worry, payments will be made in arrears with the first payment backdated to 18 July. Submitting a successful application for the COVID-19 Business Grant does not automatically make you eligible for JobSaver as there are additional requirements related to employees that need to be met. Businesses will not need to re-apply each fortnight for JobSaver but must notify Service NSW if they have not maintained the number of employees they had on 13 July 2021.
How much and how it’s calculated
Eligible businesses and not-for-profit organisations with employees will receive a fortnightly payment based on 40 per cent of their ‘average weekly payroll’ for work performed in New South Wales. The maximum weekly amount is $100,000 and the minimum weekly amount is $1,500 therefore, a business can receive a maximum fortnightly payment of $200,000 or minimum fortnightly payment of $3,000.
Calculating the ‘average weekly payroll’ amount
To calculate the ‘weekly payroll’ or ‘average weekly payroll’, refer to the amount in label W1 in the most recent BAS lodged before 26 June 2021. The amount reported in label W1 generally includes gross wages paid to employees (including tax withheld), allowances, leave loading etc. but does not include an employee’s superannuation guarantee payment. Divide this amount by the no. of days in the BAS period then multiply by seven.
March 2021 Qtr BAS (Due 28 April / 25 May 2021)
Number of days in period (Jan-2021 to Mar-2021): 90 days
Weekly payroll = W1 / no. of days in period X 7
Weekly payroll = $50,000 / 90 X 7
Weekly payroll = $3,888
JobSaver Payment = Weekly payroll X 40%
JobSaver Payment = $3,888 X 40%
JobSaver Payment = $1,555 per week therefore, the business will receive $3,110 per fortnight ($1,555 X 2).
Who’s eligible and how to apply
Businesses can access the grant if they:
- Have an Australian Business Number (ABN) and were operating in New South Wales as at 1 June 2021
- Had an aggregated annual turnover between $75,000 and $250 million (inclusive) for the year ended 30 June 2020 Note: New businesses not operating for the full year to 30 June 2020 but can demonstrate income consistent with $75,000 per annum over a shorter period prior to 26 June 2021 may still be eligible
- Have experienced a decline in turnover of 30% or more due to the Public Health Orders over a minimum two-week period from 26 June compared to the same period in June and/or July 2019 or, compared to the two-week period prior the Public Health Orders for new businesses
- Maintain their employee headcount as at 13 July 2021 for the period for which the business is receiving payments under JobSaver. Service NSW must be notified if the employee headcount declines over the period of payment due to any actions of the business.
What you need to support your application:
- MyServiceNSW Account. If you already have an account, you will need to ensure your business details are included on your account and up-to-date. You can create an account or login using the following link <https://account.service.nsw.gov.au/>
- Two forms of Identification including NSW driver’s license and Medicare card. It’s helpful to already have these uploaded to your Service NSW account
- ABN/ACN, address and bank account details of the business you’re submitting the application on behalf of
- Evidence to support aggregated annual turnover of $75k or more i.e. Australian income tax return or Notice of Assessment, profit and loss statement
- The amount of turnover for a minimum two-week period after 26 June 2021 and the amount of turnover for a minimum two-week period prior the Public Health Orders being introduced on 26 June 2021
- The most recent BAS that was submitted to the ATO prior to 26 June 2021 (i.e. March 2021 qtr BAS). This needs to be the same BAS used to calculate ‘weekly payroll’
- Name, phone no, and registration no. of qualified accountant
- of permanent employees employed by the business on 13 July 2021 and/or no. of casual staff employed by the business for more than 12 months on 13 July 2021
- Average weekly payroll amount as per the previous example calculation
- Businesses outside of the ‘highly impacted industries list’ will need to submit evidence in the form of an accountant’s letter that the business experienced the required decline in turnover of 30 per cent or more. The same accountant’s letter from the application for the COVID-19 Business Grant can be used.
The ‘highly impacted industries list’ can be found towards the bottom of the webpage in the following link: <https://www.service.nsw.gov.au/2021-covid-19-business-grant-guidelines#attachment-a-list-of-highly-impacted-industries>
Non-employing businesses will receive $1,000 per week therefore, a payment of $2,000 per fortnight under the JobSaver Payment scheme. Non-employing businesses are not eligible to a payment based on a percentage of their ‘weekly payroll’ amount as explained earlier in this article.
If you’re a non-employing business, you are not able to apply for the 2021 COVID-19 JobSaver Payment for your business if you personally have already applied for or are receiving the COVID-19 Disaster Payment from Services Australia.
For non-employing businesses (refer to definition below), the business receiving payments must be the primary income source for the associated person. Individuals with more than one non-employing business may only claim payments for one business.
A non-employing businesses is defined by the ABS as sole proprietorships and partnerships without employees (Definitions and data sources for small business in Australia: a quick guide, 2015). Whether this definition is shared across Federal and State Government departments is unknown however, it does help to provide some context into the quite short definition provided by Service NSW in their Guidelines.
Service NSW defines non-employing businesses as a business owner who does not have employees. This may include a range of entity types, such as non-employing sole traders or any other businesses without employees. To me, the word ‘business owner’ goes beyond the word business and looks at the owner rather than the structure. Therefore, I believe sole proprietors are captured in this definition. I think the rule of thumb here is if you do not have employees other than yourself regardless of entity type, do not claim the COVID-19 Disaster Payment from Services Australia and the 2021 COVID-19 Business Grant or JobSaver.
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