NSW and Federal Government Combined COVID-19 Support Package

NSW COVID-19 Business Grant

This week the NSW state and Australian Federal Governments announced a combined support package to help households and businesses during the ongoing COVID-19 lockdown.

The COVID-19 Disaster Payment will be expanded and increased under this agreement. The payment will increase to $600 if a person has lost 20 or more hours of work a week or $375 if a person has lost between 8 and less than 20 hours of work a week.

From 18 July 2021, the Disaster Payment will be available to those outside the Commonwealth declared hotspots in NSW that meet the criteria for the payment. It will be offered to any other state or territory that experiences an extended lockdown.

Also, a new business support payment will be available for those with an annual turnover between $75,000 and $50 million who can demonstrate a 30% decline in turnover. Eligible entities, including not-for-profits, will receive $1,500 to $10,000 per week based on the level of their payroll. For sole traders, payment will be set at $1,000 per week.

More information will be on the Service NSW website and we will keep you updated.

Get ready

To help avoid delays in completing your application:

  • ensure your business and contact details are up-to-date with the Australian Business Register
  • ensure your personal, contact and business details are up-to-date in your MyServiceNSW Account and your business profile
  • if you don’t have one, create a MyServiceNSW Account and business profile.


Economic support measure                      Summary of Government assistance

NSW 2021 business grant

Administered by Service NSW at service.nsw.gov.au with registrations open from 19 July 2021.

The Federal Government has indicated that these payments will not be taxable.

Eligible NSW businesses (including sole traders and not-for- profit organisations) with Australian wages below $10 million can claim grants between $7,500 and $15,000 as a result of the COVID-19 restrictions.

Three different grant amounts will be available depending on the decline in turnover experienced during the restrictions, being:

·         $7,500 for a decline of 30% or more;

·         $10,500 for a decline of 50% or more; or

·         $15,000 for a decline of 70% or more.

Saving Jobs – NSW small and medium business support payments


Administered by Service NSW

at service.nsw.gov.au


The Federal Government has indicated that these payments will not be taxable.

Eligible NSW businesses with an annual turnover of between $75,000 and $50 million that can demonstrate a 30% reduction in turnover (compared to an equivalent two- week period in 2019) will be entitled to business support payments from week four of the lockdown.

Eligible entities will receive 40% of their NSW payroll payments, at a minimum of $1,500 and a maximum of

$10,000 per week.

Assistance will cease when the current lockdown restrictions are eased, or when the Commonwealth hotspot declaration is removed.

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

For non-employing businesses (e.g., eligible sole traders) the payment will be set at $1,000 per week.

Micro business grants


Administered by Service NSW

at service.nsw.gov.au


The Federal Government has indicated that these payments may not be taxable.

Eligible ‘micro businesses’ (including sole traders) with a turnover of between $30,000 and $75,000 that have experienced a decline in turnover of at least 30% will be eligible for payments of $1,500 per fortnight of restrictions from late July 2021.

NSW Payroll concessions


Administered     by     Revenue NSW at revenue.nsw.gov.au

NSW payroll tax concessions include:

·         Payroll tax waivers of 25% for businesses with grouped Australian wages of between $1.2 million and

$10 million that have experienced a 30% decline in turnover.

·         Payment deferrals and interest-free repayments.

NSW Land tax concessions


Administered     by     Revenue NSW at revenue.nsw.gov.au

NSW Land tax relief concessions include:

·         Land tax relief equal to the value of rent reductions provided by commercial, retail and residential landlords to financially-distressed tenants is available for up to 100% of the 2021 NSW land tax year liability.

·         A capped grant up to $1,500 for residential landlords who are not liable to pay land tax who reduce rent for tenants.

Short-term eviction moratorium and other tenant safeguards


More information available at Fair Trading NSW at fairtrading.nsw.gov.au

The NSW Government will introduce a short-term eviction moratorium for rental arrears where a residential tenant suffers loss of income of 25% due to COVID-19 and meets other eligibility criteria.

In addition, it will restrict recovery of security bonds, lockouts or evictions of impacted retail and commercial tenants prior to mediation.

Targeted industry support

Other targeted industry support measures include:

·         The 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 (administered by Create NSW).

·         A $26 million package for the accommodation sector.

COVID-19 Disaster Payment

Support for individuals


Administered by Services Australia at servicesaustralia.gov.au


This payment is assessable income to the individual recipient.

The COVID-19 Disaster Payment was originally introduced in response to the previous two-week Victorian lockdown (and was made applicable to all future Commonwealth-declared COVID-19 hotspots). The payment is not applicable for the first seven days of an eligible lockdown (i.e., it is payable to eligible recipients from the second week) and now, in response to the current NSW lockdown,  the  Federal  Government  has extended this support for individuals who  have  lost  work (and pay) as a result of the COVID-19 lockdowns.

Specifically, from week four of the lockdown, the COVID-19 Disaster Payment will increase:

·         from $500 to $600 each week if a person has lost 20 hours or more of work a week; or

·         from $325 to $375 each week if a person has lost between 8 and 20 hours of work (or a full day of their usual work hours per week).

This will be a recurring payment for approved recipients for as long as the Commonwealth-declared hotspot and lockdown restrictions remain in place. Furthermore, from 18 July 2021, this payment will be available to eligible NSW residents outside Commonwealth-declared hotspots (which will be funded directly by the NSW Government).


Please contact us if you have any questions about your business. We are here to help!

At the same time please bear with us while we await the governments to work out the details.