The NSW and Federal Governments have announced additional support measures for businesses and individuals in NSW as the Greater Sydney lockdown looks set to continue well beyond this Friday, 16 July 2021.

As you would appreciate, not all details are available regarding eligibility. Some commentators have suggested details and examples will be released at 5pm Friday afternoon, we will keep you informed as further information is released.

Cash flow boost for businesses

From week four of the lockdown (with lockdown officially commencing June 26, 2021), the NSW and Federal Governments will co-fund small and medium business support payments, similar to the cash flow boost released last year. This new measure will be available from next week, being the fourth week of the Greater Sydney lockdown and will continue as long as the lockdown is in place.

This support is targeted at NSW entities, including not-for-profits, with an annual turnover between $75,000 and $50 million, that have experienced a reduction in turnover of 30% or more compared to an equivalent two week period in 2019.

Eligible entities will receive 40% of their gross NSW payroll payments, at a minimum of $1,500 and a maximum of $10,000 per week.

Importantly, entities will be required to maintain their full time, part time and long term casual staffing level as of 13 July 2021 to receive the payment.

For non-employing businesses, such as sole traders, the payment will be set at $1,000 per week.

Businesses can register their interest from 14 July 2021 at www.service.nsw.gov.au and applications open 26 July 2021.

NSW business grants

The NSW Government has expanded their previously announced grants programme. NSW businesses with up to $10 million in payroll can claim grants between $7,500 and $15,000 to cover the first three weeks of restrictions. These are one-off payments. Applications open 19 July, 2021.

A new grants programme for micro businesses with annual turnover of between $30,000 and $75,000 which experience a decline in turnover of 30% has also been announced. Businesses will be eligible for a $1,500 payment per fortnight of restrictions. Applications open 26 July, 2021.

Payroll tax waivers of 25% are available for businesses with Australian wages of between $1.2 million and $10 million that have experienced a 30% decline in turnover, as well as payroll tax deferrals and interest free repayment plans.

Businesses can apply on-line for these grants and concessions at www.service.nsw.gov.au with applications opening on 26 July 2021.

Complementing the grants scheme, the Commonwealth will also provide additional support through the tax system, by making NSW small business grants, including the new small business payments, tax exempt. In addition, there is administrative relief to NSW taxpayers facing hardship, including reduced payment plans, no interest charged on late payments and varying instalments on request.

National disaster payment scheme expanded and co-funded

The disaster payment scheme has been expanded and from Tuesday 13 July, 2021 anyone who has lost more than 8 hours of work per week can now access the disaster payment.

People who have lost more than 20 hours of work can access $600 per week, up from the previously announced $500 per week. People who have lost 8 hours and up to 20 hours of work can access $375 per week, up from $325.

The payment’s eligibility criteria has been broadened to include all residents of NSW, and is no longer limited to those under lockdown in regions declared hotspots by the Commonwealth. The broadened scope of the payment, however, is limited to residents of NSW, as its cost will be offset by the State government.

Businesses can apply on-line for these grants and concessions at www.servicesaustralia.gov.au with applications opening on 26 July 2021.

Relief for landlords and tenants

State support is also being made available to both residential and commercial tenants. Further details are yet to be released but the NSW State Treasurer has announced the following measures:

• For residential landlords who are not liable to pay land tax and who reduce rent for tenants, a capped grant of up to $1,500.
• Land tax relief equal to the value of rent reductions provided by commercial, retail and residential landlords to financially distressed tenants, up to 100% of the 2021 land tax year liability.
• Introduction of legislative amendments to ensure a short-term eviction moratorium for rental arrears where a residential tenant suffers loss of income of 25% or more due to COVID-19 and meets a range of criteria.
• No recovery of security bonds, or lockouts or evictions of impacted retail and commercial tenants prior to mediation.

Other measures announced (details still to come)

State support is also being made available to both residential and commercial tenants. Further details are yet to be released but the NSW State Treasurer has announced the following measures:

• A support package for the accommodation sector worth $26 million.
• Deferral of gaming tax assessments for clubs until 21 December 2021 and hotels until 21 January 2021.
• A $75 million support package for the performing arts sector to be administered by Create NSW.
• $12 million in additional funding for temporary accommodation for those at risk of or experiencing homelessness, and
• $5.1 million in NSW funding to support mental health.

For further details about any of the above please contact your StewartBrown Manager or Partner. Should you need assistance in determining your businesses eligibility for these support payments and/or to make applications in respect of same on your behalf we would be pleased to assist.

The StewartBrown March 2021 Aged Care Financial Performance Survey incorporates detailed financial and supporting data from 1,174 aged care homes (95,097 beds/places) and 45,306 home care packages across Australia. The quarterly survey is the largest benchmark in the aged care sector and provides invaluable insight into the trends and drivers of financial performance at the sector level and at the aged care home or programme level.

Click here to download a PDF copy of the March 2021 Aged Care Sector Report.

If you have any queries regarding this report or on any of our audit and assurance or consulting services, please do not hesitate to contact our office on (02) 9412 3033 or call 0429 680 785.

For the information of clients we enclose this checklist which you may find helpful in planning your year-end tax strategies. Careful planning (and in many cases timing) is even more important this year. Please contact your StewartBrown Manager or Partner should you need any assistance with understanding or applying the below.

Here’s a quick summary of what you need to consider for yourself and your business before the end of the financial year.

The Aged Care Sector is at a critical juncture both in terms of fulfilling its obligations to residents and care recipients as well as remaining financially sustainable. The Royal Commission into Aged Care Quality and Safety determined that the current system is not fit for purpose and made 148 Recommendations in its Final Report. These recommendations were made to remediate the current system and to bring it up to a standard that is sustainable and meets the care needs and safety expectations of older Australians and their families.