Recovery Grant for Small Businesses and Non-Profit Organisations – Guidelines

These guidelines relate to Recovery Grant for Small Businesses and Non-Profit Organisations.

1 About the program

1. 1 Made by the Commonwealth and New South Wales Governments under the Disaster Recovery Funding Arrangements, the objective of the assistance measure (Program) is to support Small Businesses and Non-for-Profit Organisations that were located within the relevant Impacted Area and suffered Direct Damage as a result of:  

  1. AGRN 1198 Tropical Cyclone Alfred Severe Weather from 3 March 2025, and/or  
  2. AGRN 1212 NSW East Coast Severe Weather from 18 May 2025.  

1.2 Where a Small Business or Non-profit Organisation has been impacted by both AGRN 1198 and AGRN 1212, they may only receive assistance once under this Program. All expenses claimed by the Small Business or Non-profit Organisation must be associated with only one Eligible Disaster.

1.3 The Program is intended to assist Small Businesses and Non-for-Profit Organisations with the costs of clean-up and Reinstatement where they suffered Direct Damage as a result of the Eligible Disasters.  

1.4 The Program is being administered in accordance with the requirements of the Grants Administration Guide 2024 and the Commonwealth Disaster Recovery Funding Arrangements and is a joint initiative between the Commonwealth and NSW Governments. Service NSW and the NSW Reconstruction Authority are jointly responsible for compliance with the Grants Administration Guide.

1.5 Service NSW is the Administering Agency, and the NSW Reconstruction Authority is the Policy Owner. 

2 Available funding

2.1 In line with these guidelines, the maximum grant amount for clean-up and Reinstatement is $25,000, as follows:   

  1. funds of up to $5,000 will be given to eligible applicants on the provision of the evidence listed in clause 7.2(a);
  2. funds between $5,001 to $25,000 will be given to eligible applicants on the provision of the evidence in clause 7.2(b).  

3 Timeframe and key dates

3.1 Applications for this Program will be accepted from 11 June 2025.  

3.2 Applications for this Program will close at 11:59pm on 11 December 2025.  

4 How funding may be used

4.1 Funds may be used to help cover costs associated with clean-up and Reinstatement of the Small Business or Non-profit Organisation. This includes:

(a) engaging tradespersons to conduct a safety inspection of damage to a property, premises or equipment;

(b) hiring and leasing equipment or purchasing materials to clean a property, premises or equipment;

(c) in certain circumstances, purchasing equipment may be considered eligible on a case-by-case basis, if demonstrated to be more cost effective and approved by Service NSW and the NSW Reconstruction Authority;  

(d) paying additional wages to an existing employee, or employing a person to clean the damaged property, premises or equipment, where:  

  1. the cost would not ordinarily have been incurred in the absence of the Eligible Disasters; or  
  2. the cost exceeds the cost that would ordinarily have been incurred in the absence of the Eligible Disasters;

(e) removing and disposing of debris, damaged goods or materials;

(f) removing and disposing of spoiled goods and stock;

(g) essential repairs to premises and internal fittings (e.g. floor coverings, electrical rewiring, shelving), where the repair is essential for resuming operation of the Small Business or Non-profit Organisation. A Home-based Business may only claim for repair or replacement of that part of the building or fixture that is directly attributable to the business, not for other household damage;

(h) purchasing, hiring or leasing equipment or materials that are essential for immediately resuming operation of the Small Business or Non-profit Organisation; and  

(i) any of the following:  

  1. replacing lost or damaged stock, where the replacement is essential for immediately resuming operation of the Small Business or Non-profit Organisation; or  
  2. leasing temporary premises (for 12 months or less) in the same region or LGA, for the purpose of resuming operation of the Small Business or Non-profit Organisation.

(j) A home-based business may only claim for repair or replacement to the portion of the building or fixture that is:  

  1. owned by the Small Business, evidenced by a title search and/or Certificate of Title, and  
  2. used predominantly for business activities, evidenced by financial records, photos, video evidence or a statutory declaration.

4.2 Funds cannot be used to help pay for costs associated with the following:

(a) repairs to a building the applicant leases for residential or commercial purposes, unless the applicant lets the property in the course of operating a Small Business, evidenced by a Private Ruling issued by the ATO or an accountant’s letter;  

(b) loss of income as a result of the Eligible Disasters;

(c) payment of employee salaries that would ordinarily have been incurred by the Small Business or Non-profit Organisation had the Eligible Disasters not occurred;

(d) where the applicant is entitled to, has received, or has been approved to receive, an amount under a policy of insurance for the relevant costs claimed. The applicant may be eligible for a grant for the portion of costs not covered by their insurance, or for amounts in excess of the value insured;  

(e) where the applicant has received or has been approved to receive financial assistance from another government assistance scheme for an item described in clause 4.1. The applicant cannot receive reimbursement under this Program for the same item(s); 

(f) any consequential loss or loss of market opportunity resulting from the Eligible Disasters; and 

(g) improvements to property, premises, or equipment beyond what existed pre-disaster, and for costs recouped through the sale of salvaged assets. Equipment purchases must be like-for-like and of similar value to what existed pre-disaster, noting that exact replacements may not be available and within reason, equivalent alternatives may be required. 

5 Eligibility criteria

5.1 To be eligible, the applicant must: 

(a) either be a Small Business or a Non-profit Organisation;  

(b) be located in the Impacted Area at the time of Eligible Disasters or otherwise meet the requirements of clause 7.1(c);  

(c) have suffered Direct Damage to premises and/or tools of trade (e.g. equipment, plant);  

(d) be intending to re-establish in the same community, region or sector as the Impacted Area  

(e) be primarily responsible for meeting the costs claimed in the applications for costs relating to activities in clause 4.1; and  

(f) irrespective of any other clause, not be:  

  1. a Public Company;   
  1. a body corporate under the Body Corporate and Community Management Act 1997;  
  1. a Farm Enterprise; and   
  1. a Superannuation Fund,

5.2 Eligible Small Businesses

(a) To be eligible as a Small Business, the business must:

  1. total of all standard hours worked by all employees (whether full-time or part-time) is less than the number of standard hours which would be worked by 20 full-time employees, as defined by the Australian Bureau of Statistics;  
  2. in the case of a Sole Trader with no employees, the sole trader must derive at least 50 per cent of their income from the business;  
  3. hold an ABN active at the time of the Eligible Disasters,
  4. have been engaged in carrying on the Small Business when affected by the Eligible Disasters;  
  5. not derive 50 per cent or more in income from carrying on a Primary Production Enterprise;  
  6. not be part of a national chain. Individual franchises may be eligible if they meet the criteria in clauses 5.1 and 5.2(a)(i)-().  

(b) In circumstances where clause 5.2(a)(ii) is not met, the business may still be eligible as a Small Business if:

  1. the business is in start-up mode with the intention of being the applicant's primary source of income (at least 50 per cent) in a relatively short period of time, immediately prior to the Eligible Disasters (e.g. premises being prepared but trading had not yet commenced);
  2. the business had been the applicant's primary source of income and would have become so again in a relatively short period of time had the Eligible Disasters not occurred;
  3. there has been substantial capital investment into the business (e.g. salary/wages from employment or monies from elsewhere) for building up the business such that it was close to becoming a viable commercial operation immediately prior to the Eligible Disasters; and
  4. they are operating more than two separate and distinct business entities (e.g. three businesses each providing 33 per cent of a sole trader's income). 

5.3 Eligible Non-profit Organisations

(a) To be eligible as a Non-profit Organisation, the organisation must: 

  1. be registered with the ACNC;
  2. be registered with NSW Fair Trading (or an equivalent State/Territory regulatory body) as: 
    (A) an incorporated association; 
    (B) a non-distributing cooperative;
  3. be registered with an equivalent State/Territory regulatory body and have held that registration at the time of the Eligible Disasters; or
  4. be established as a company limited by guarantee that has language in the Non-profit Organisation’s constitution stating that they are established and operated for a purpose other than the generation of profit
  5. not be included on the National Redress Scheme’s website on the list of ‘Institutions that have not joined or signified their intent to join the Scheme’. 

6 Eligible separate businesses and co-location

6.1 Eligible Separate Businesses  

(a) Where an applicant operates more than one distinct Small Business under a single ABN, they may apply for assistance in respect of each business, provided each one meets the criteria of an Eligible Separate Small Business.  

(b) In determining an application under clause 6.1(a) Service NSW may consider factors including (without limitation):

  1. separate staffing arrangements;
  2. dedicated plant, equipment or stock,  
  3. distinct accounting and insurance arrangements;
  4. use of separate trading names; and
  5. the commercial viability and autonomy of each business, assuming the other businesses cease to operate.

6.2 Co-location  

(a) Where two or more independent and separately owned and registered Small Businesses or Non-profit Organisations operate from the same premises, each may receive the maximum available grant amount providing applicants can demonstrate that:

  1. they are independent and separately owned and registered with their own ABN (in the case of a Small Business) or relevant registration (in the case of a Non-profit Organisation) from the other Small Business or Non-profit Organisation at that premises;
  2. they are each eligible for the grant in their own right, in line with clause 5 (as applicable);
  3. they are claiming for different expenses compared to the other Small Business or Non-profit Organisation (as the case may be) who are operating at the same premises; and  
  4. the expenses that they are claiming are essential to their operations. 

7 Evidence

7.1 Evidence of location within the Impacted Area  

(a) If the Small Business or Non-profit Organisation owns the property, the applicant must provide:  

  1. a copy of a Council Rates Notice for the property impacted by the Eligible Disasters, received up to 12 months prior to the Eligible Disaster for which you are claiming expenses; or
  2. other evidence to demonstrate ownership.

(b) If the Small Business or Non-profit Organisation leases the property, the applicant must provide:  

  1. a copy of the current lease agreement (lease agreement must confirm that the applicant is responsible for meeting the costs being claimed); or
  2. other evidence to demonstrate lease of property

(c) If the Small Business Non-profit Organisation does not have a fixed address within the Impacted Area but operates there on a part-time or regular basis, and their property, plant and/or equipment was damaged as a result of the Eligible Disasters, they may still be eligible. In such cases, the applicant must:

  1. meet the eligibility criteria in clause 5; and
  2. provide evidence to demonstrate regular operations in the Impacted Area and Direct Damage to property, plant or equipment, as required by these guidelines.

7.2 Evidence of Direct Damage

(a) Applications up to $5,000 must be supported by evidence of Direct Damage at the time of making the application, which must include:  

  1. 5 to 10 photographs showing the property that sustained Direct Damage, with brief descriptions of what the photos show in the file name or title;  
  2. must provide quotes, estimates or invoices where available; and  
  3. a list of the items that have incurred Direct Damage.  

NOTE: if the applicant is unable to provide photographs or documentation, Service NSW may accept alternative evidence, subject to its assessment of credibility and relevance. Service NSW may also request further information to assess eligibility.

(b) If the total of all claims exceeds $5000, the applicant must provide Evidence of Payment for the full amount claimed, including for any amounts already paid under previous claims.  

7.3 Business evidence  

(a) Eligible applicants must provide quotes, estimates or invoices where available in accordance with clause 7.  

NOTE: Applicants are not required to complete all expenditure before applying for a grant. However, Evidence of Payment for completed work will be required prior to payment of any grant amount over $5,000 or as applicable under clause 7 (and up to the maximum of $25,000).

(b) To demonstrate eligibility as a Small Business or Non-Profit Organisation, applicants may be asked to provide, among other things:  

  1. evidence of employee numbers, such as payroll summaries or Single Touch Payroll records confirming the number of full-time equivalent employees;
  2. for sole traders, evidence the applicant is deriving at least 50 per cent of their income from the business such as a copy of their income tax return for the last financial year or copies of financial statements or activity statements;  
  3. in the case of start-up or seasonal businesses, a statutory declaration outlining the business’s operational status and intention to be the applicant’s primary source of income, annexing supporting documents such as investment records, invoices, or equipment purchase receipts.

8 Application and claiming process

8.1 Applications must be submitted via:  

  1. the applicant’s SNSW Business Profile by an Authorised Person via the MyServiceNSW Account on the Service NSW website or mobile application; or  
  2. in person at a Service NSW Centre, Mobile Service Centre or any other centre that is authorised to receive applications, for example a Recovery Assistance Point.  

NOTE: support in making an application can be provided by contacting Service NSW on 13 77 88, or by visiting a Service NSW Service Centre, Mobile Service Centre or any other centre that is authorised to receive applications, for example a Recovery Assistance Point. 

9 Assessment, approval process and decision makers

9.1 Service NSW will assess applications in the order in which they are lodged. Incomplete applications will not enter the assessment queue until all required information is provided. Applications may be saved and submitted when complete using the ‘save and resume’ function.

9.2 Applicants will receive notification of the outcome. Applications will be assessed and decided by Service NSW against the eligibility criteria in these guidelines.  

9.3 Service NSW may request further information as necessary to assess an application. Failure to comply with such request may lead to an application being declined.    

9.4 Service NSW reserves the right to decline an application where eligibility criteria are not met, or where the applicant does not or cannot provide sufficient information or evidence to determine if the eligibility criteria of these guidelines have been met.  

9.5 Applications submitted may be subject to audit activities by Service NSW or its agents, the purpose of which will be to determine compliance with the Program.  

9.6 Before applying for financial assistance under this Program, applicants should seek advice from their legal, business or financial advisers about the tax implications of this financial assistance.

9.7 Applicants will be expected to provide supporting documentation, such as the latest Local Council Rates Notice, latest available Tax Return and Financial Statement for your Small Business or Non-profit Organisation.

9.8 In exceptional circumstances, consideration may be given to applicants who do not meet the eligibility criteria outlined in Sections 5 and 6, upon agreement between Service NSW, the NSW Reconstruction Authority and the National Emergency Management Agency (NEMA).

9.9 The Chief Executive Officer (or delegate), NSW Reconstruction Authority, is the designated decision-maker. The decision-maker is responsible for making determinations regarding grant criteria and policy intent. This includes approving Program policies and processes for assessment, risk management, quality assurance and auditing, and escalation of any compliance issues. 

10 Disputes and complaints 

10.1 Applicants are entitled to dispute the assessment outcome of the application by requesting an internal review of the assessment. Disputes can be lodged via the Service NSW website, in person at a Service NSW centre or by contacting Service NSW on 13 77 88.  

10.2 Applicants disputing the assessment outcome of the application are entitled to an internal review of the application. Applications for an internal review must be made within 28 calendar days of being notified of the outcome. Disputes lodged after this time may not be accepted by Service NSW.

10.3 The internal review will be conducted by a separate Service NSW team who will review the application against the eligibility criteria and these guidelines, including any new evidence that the applicant may provide.

10.4 Applicants may also lodge complaints via the Service NSW website, in person at a Service NSW centre or by contacting Service NSW on 13 77 88.  Service NSW will manage complaints in accordance with the Service NSW Complaints Policy.

11 False and misleading information

11.1 Applicants must declare the information provided in the application is true and correct. Penalties may apply for false or misleading information. Where false or misleading information is provided, applications may be referred to law enforcement.  

11.2 By lodging the claim form, the applicant is declaring that the information provided in the application form and supporting documentation is true and accurate.  

11.3 If any information provided in an application or supporting documentation is found to be inaccurate, untrue or misleading, legal action may be taken against the applicant, including action to recover the funds.

12 Important information

12.1 These guidelines are correct at the time of publishing.  

12.2 Applicants must retain and provide on request, for a minimum of 24 months following the closing of the program, all documentation and evidence related to eligibility and the application requirements outlined in these guidelines.

12.3 The NSW Reconstruction Authority and Service NSW reserve the right to amend, alter or change these guidelines at any time, and it is the responsibility of the applicant to check the relevant website prior to application. All iterations of the grant guidelines and the dates of publication will be available on the Service NSW website.  

12.4 The guidelines that apply to the Small Business or Non-profit Organisation’s application will be the guidelines that are current at the time their application is assessed by Service NSW.  

12.5 These guidelines must be read in conjunction with the Program Terms and Conditions, which set out the terms on which the application will be assessed and on which funding may be provided and used. By applying to receive a grant, an applicant agrees to be bound by these guidelines and the Terms and Conditions.

12.6 Funds used other than in accordance with these guidelines and the Terms and Conditions will be repayable on demand.

12.7 At the time of the recovery grant application, Non-profit Organisations that are included on the National Redress Scheme’s website list as an ‘Institution that has not joined or signified their intent to join’ will be required to join the Scheme prior to recovery grant applications closing, before any grant funding can be received.

13 Definitions

13.1 Terms or expressions starting with a capital letter have the meaning given in this section and include all grammatical forms e.g. “Business” includes “Businesses”, unless the context indicates otherwise.     

13.2 Defined Terms 

ABN means an Australian Business Number issued by the Australian Government to businesses and organisations.  

ACNC means the Australian Charities and Not-for-profits Commission, being the national regulator of charities registered under the Australian Charities and Not-for-profits Commission Act 2012 (Cth).  

Administering Agency means the responsible agency/department/body for assessing and administering the Program. 

AGRN means Australian Government Reference Number, the unique identifier assigned by the Australian Government to each natural disaster event for tracking and reporting purposes. 

Authorised Person means a person authorised to apply on behalf of the Small Business or Non-profit Organisation. This may include a director, owner or other relevant person. 

Direct Damage means physical damage or destruction to property, assets, stock, equipment or infrastructure that is a direct result of the Eligible Disasters, and not attributable to pre-existing conditions, gradual deterioration or indirect or consequential loss.  

Disaster Recovery Funding Arrangements means the joint Commonwealth and State arrangements that provide financial assistance to help communities recover from eligible natural disasters.  

Eligible Disaster means either AGRN 1198 Tropical Cyclone Alfred Severe Weather or AGRN 1212 NSW East Coast Severe Weather. 

Eligible Separate Small Business means a Small Business operated under the same ABN as another Small Business, that can be reasonably considered commercially viable and autonomous from other Small Businesses operated by the applicant.  

Evidence of Payment means any of the following: 

(a) a tax invoice that includes:  

  1. the name, address and ABN (if applicable) of the issuing entity; and
  2. a description of each good or service provided, which must be clearly and specifically linked to the approved expenditure and to damage arising from the Eligible Disasters;  

(b) a receipt that includes:  

  1. the name, address and ABN (if applicable) of the issuing entity; and
  2. a description of each item to which the receipt relates, clearly and specifically linked to the approved expenditure and to damage arising from the Eligible Disasters; or  

(c) a copy of the applicant’s bank transfer or bank statement that shows the payment made to the supplier’s name in the relevant invoice or receipt.  

Farm Enterprise means a business that primarily carries on the activity of producing crops, livestock, forestry for the commercial production of products for consumers, or any activity listed in Division A of the Australian New Zealand Standard Industrial Classification 2006 (ANZSIC) 1292.0 (Revision 2.0) published by the Australian Bureau of Statistics. 

Grants Administration Guide means the Grants Administration Guide mandated by the NSW Government, which provides an overview of the grants administration process, overarching principles that apply to all NSW Government grants, and mandatory requirements that must be complied with when administering grants. 

Impacted Area means the local government areas activated for assistance under the Eligible Disasters. These are published on https://www.nsw.gov.au/emergency/recovery/natural-disaster-declarations/fy-2024-25. 

Non-profit Organisation means a non-profit organisation that meets the criteria in clause 5.3.  

Policy Owner means the agency responsible for the grant design including overseeing development and approval of the eligibility criteria, assessment and compliance methodologies as well as grant evaluation.   

Primary Production Enterprise means an enterprise that involves:  

  1. the cultivation of land;
  2. the maintenance of animals or poultry for the purpose of selling them or their natural increase;
  3. fishing, forest operations, viticulture, beekeeping, dairy farming or horticulture; or
  4. any activity carried out in preparation for, or as an integral part of, any of the above.  

Program has the meaning given in clause 1.1.

Public Company has the meaning given to it in the Corporations Act 2001 (Cth). 

Reinstatement means the carrying out of activities that are necessary to help the Small Business or Non-profit Organisation continue or resume (as applicable) normal trading or production or at a similar level, as soon as possible, following the Eligible Disasters. 

Small Business means a business that meets the criteria in clause 5.2 and includes an Eligible Separate Small Business.  

Terms and Conditions means the terms and conditions applicable to the Program, as published on the Service NSW website. 

Appendix A: Eligible Local Government Areas

The local government areas (LGAs) of: 

AGRN 1212AGRN1198
Armidale*Armidale*
Bellingen*Ballina
Central CoastBellingen*
CessnockByron
Clarence Valley*Clarence Valley*
Coffs Harbour*Coffs Harbour*
Dungog*Dungog*
Kempsey*Glenn Innes Severn
Lake MacquarieKempsey*
MaitlandKyogle
Mid-Coast*Lismore
MuswellbrookLord Howe Island
Nambucca Valley*Mid-Coast*
NewcastleNambucca Valley*
Port Macquarie-Hastings*Port Macquarie-Hastings*
Port StephensRichmond Valley
SingletonTenterfield
Upper HunterTweed
Walcha*Walcha*

*Note: Applicants located in the impacted area for both eligible disasters (AGRN 1198 and AGRN 1212) will only be eligible to apply for a Recovery Grant for Small Businesses and Non-Profit Organisations up to the maximum of $25,000.

Last updated: 11 June 2025