Financial stimulus package for small business
The NSW Government has announced a stimulus package that includes the following initiatives for small business:
- Payroll tax changes
- Tax-free threshold increase from $900,000 to $1 million from 1 July 2020.
Deferral of payroll tax for business with payrolls over $10 million for 6 months (up to $4 billion deferred).
An additional 3-month deferral for businesses with payrolls of $10 million or less who received a 3-month waiver on payroll tax in the first package.
For more information about payroll tax changes, visit Revenue NSW.
Deferral of gaming tax for clubs, pubs and hotels, and lotteries tax for 6 months, conditional on these funds being used to retain staff. This improves liquidity and helps these businesses stay afloat.
Rents and parking
Deferral of the parking space levy for 6 months.
Deferral of rents for 6 months for commercial tenants with less than 20
employees in all Government-owned properties.
Licence, registration and permit fee waivers
Licence, registration and permit fees will be automatically waived for 12-months on new applications and renewals lodged by eligible businesses and individuals as follows:
From 1 April 2020 to 31 March 2021
- Liquor licences for bars, pubs, clubs, hotels and most other licensed venues
- Licences for tattoo parlours and pyrotechnicians
- Paintball venue permits
- Registration of amusement devices.
From 20 April 2020 to 19 April 2021
- Licences for tattooists
- Licences for packaged liquor licences for small operators (up to 3 licensees).
Licences relating to gambling are excluded.
From 15 April 2020 to 14 April 2021
- 1-year building contractor licences, trade or specialist contractor licences and motor vehicle repairer licences. For 3-year or 5-year licence applications and renewals, the licence fee is discounted by 1 year.
- 5-year High Risk Work licences and asbestos removal licences
- 2-year demolition licences.
From 20 April 2020 to 19 April 2021
- High Risk Work Assessor Accreditation licence
- SafeWork Registered Training Organisations licence
- The following 1-year licences:
- Home Building: Qualified Supervisor Certificate
- Home Building: Tradesperson Certificates
- Motor Vehicle Tradesperson Certificates (MVTC).
For longer application and renewal durations, the licence fee is discounted by 1 year.
Fee waivers for change of class, amendments to licences and replacement licences are excluded.
Emergency cleaning stimulus package
The NSW Government is hiring small and medium-sized cleaning businesses to help existing contractors minimise the spread of COVID-19. Additional businesses will enhance cleaning of public infrastructure including schools, TAFE and transport facilities.
Supplementary government cleaning contracts are available for:
general cleaning low-risk areas
enhanced cleaning for COVID-19 risk reduction
environment cleaning of facilities after a suspected COVID-19 diagnosis
cleaning auditing services.
Small business recovery grant
A small business recovery grant of up to $3000 is available to help NSW small businesses and not-for-profits in industries highly impacted by COVID-19 to safely relaunch their operations.
The grant can be used to cover expenses that will allow businesses and not-for-profits to safely re-launch, such as marketing and advertising expenses, making fit-out changes, training staff to work safely under the current health conditions, and to get financial advice.
To be eligible, businesses will need to:
- have an annual turnover of more than $75,000 and employ fewer than 20 employees
- have a payroll below the NSW 2019-20 payroll tax threshold of $900,000
- be highly impacted by the Public Health (COVID-19 Restrictions on Gathering and Movement) Order 2020 issued on 30 March 2020
- have experienced at least 30% decline in turnover
- have costs associated with safely reopening or up-scaling your business from 1 July 2020.
Highly impacted industries
Eligible industries are those that have been subject to closure or are highly impacted by NSW Government health directions in relation to COVID-19 and include:
- Retail trade
- Accommodation and food service
- Rental, hiring and real estate services
- Administrative and support services
- Arts and recreation services.
For further eligibility criteria, the full list of eligible industries and the application form, visit Apply for a small business COVID-19 recovery grant.
Export assistance grant
An export assistance grant of up to $10,000 will soon be available for up to 1000 eligible small or medium NSW export businesses that have recently experienced disruptions to freight channels or reductions in orders. More information, including eligibility criteria and the online application process, will soon be available on the Service NSW website.
For details and to register your interest, visit Export support measures.
Small business support grant
Applications have closed for the NSW small business COVID-19 support grant of up to $10,000 and are now being processed.
If you have questions about this grant, please call us on 13 77 88.
Small businesses that have been impacted by COVID-19 and employ workers can register to receive the JobKeeper Payment. This payment from the federal government is a subsidy to business owners that enables them to keep paying their workers even when revenue has declined.
The JobKeeper Payment has been extended to 28 March 2021, and rates of payment will be gradually reduced from 28 September as businesses adjust to new market conditions.
For more information, visit JobKeeper Payment.
Small and medium enterprise (SME) guarantee scheme
The Australian Government will guarantee 50% of the value of eligible business loans to small and medium enterprises impacted by COVID-19. Maximum loan value is $250,000 and there will be a repayment-free period of six months. For more information, visit Supporting the flow of credit fact sheet – PDF.
Access to superannuation for sole traders
Sole traders who have suffered a decrease in income of at least 20% as a result of COVID-19 can apply to access their superannuation, to a total value of $10,000 this financial year, and another $10,000 next financial year. Withdrawals are tax free. For more information, visit Early access to superannuation – PDF.
Instant asset write-off
The Australian Tax Office (ATO) has increased its instant asset write-off threshold to $150,000 per asset for eligible businesses.
Boosting cash flow for employers
The Australian Government is providing a tax-free payment to eligible small and medium-sized businesses and not-for-profits (including charities) with aggregated annual turnover under $50 million that employ workers. Employers can receive an amount from $20,000 up to a maximum of $100,000 across two payments. For more information, visit Boosting cash flow for employers.
Backing business incentives
The Australian Government via the ATO is accelerating depreciation deductions. The time-limited backing business incentive aims to support business investment and short-term growth. A deduction of 50% of the cost of eligible new assets will apply.