National employer organisation Ai Group welcomed the Federal Government support package being provided to businesses and employees affected by lockdown measures. “Insulating those worst affected by longer lockdowns will not only help put a cap on the impacts on individuals and businesses, it will help maintain the overall health of the economy," said Innes Willox, CEO of Ai Group. (See details of the 'COVID-19 Disaster Payment' )
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"We look forward to working closely with the federal and NSW governments to ensure the support measures are as effective as possible," Willox said. "The measures announced also provide some comfort to businesses around the country that federal support measures will be in place if other states also enforce long lockdowns on their communities. Lockdowns have both immediate and prolonged economic impacts on the economy, hitting business and consumer confidence, spending and investment.”
The new national arrangements have been developed following cooperation between the Commonwealth and NSW governments to ensure additional support is targeted and rolls out as quickly as possible under a new cost sharing agreement, according to a statement from the federal government:
COVID-19 Disaster Payment
The Commonwealth will enhance and expand the support available to NSW and other states that experience an extended lockdown.
Specifically, the Commonwealth will:
- From week four of a lockdown because of a Commonwealth declared hotspot, 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 $325 to $375 each week if a person has lost between 8 and 20 hours of work.
- Make the COVID-19 Disaster Payment a recurring payment for approved recipients for as long as the Commonwealth declared hotspot and lockdown restrictions remain in place. This will remove the need for recipients to re-claim for each seven day period of a lockdown.
- Amend the COVID-19 Disaster Payment so that a person would be eligible for the payment, including where they are still working, provided they have lost more than 8 hours or a full day of work.
From 18 July 2021 the COVID-19 Disaster Payment will be available to those outside Commonwealth declared hotspots in NSW that meet the criteria for the payment.
The NSW Government will fund any payments outside a Commonwealth declared hotspot, with the Commonwealth continuing to fund payments to recipients in a Commonwealth declared hotspot.
This arrangement will be available to other states and territories for future lockdown as a result of a Commonwealth declared hotspot .
Information about how to apply for COVID-19 Disaster Payment can be found on the Services Australia website at COVID-19 Disaster Payment
Small and medium business support payments
From week four of the lockdown, the Commonwealth will fund 50 per cent of the cost of a new small and medium business support payment to be implemented and administered by Service NSW.
Eligible entities will receive 40 per cent of their NSW payroll payments, at a minimum of $1500 and a maximum of $10,000 per week.
Entities will be eligible if their turnover is 30 per cent lower than an equivalent two week period in 2019.
The new small to medium business support payment will be available to non-employing and employing entities in NSW, including not for profits, with an annual turnover between $75,000 and $50 million.
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, such as sole traders, the payment will be set at $1,000 per week.
Businesses can register their interest from 14 July 2021 at Service NSW
The assistance will cease when current lockdown restrictions are eased or when the Commonwealth hotspot declaration is removed.
Commonwealth business tax relief
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.
- Providing administrative relief to NSW taxpayers facing hardship, including reduced payment plans, no interest charged on late payments and varying instalments on request.
Mental health support
The Commonwealth and NSW governments will deliver a $17.35 million mental health support package for NSW including:
- A boost for crisis and mental health services including for Lifeline, free 24 hour support via Sonder and counselling for perinatal depression and anxiety
- Funding for mental health support for vulnerable and culturally and linguistically diverse communities
- Assistance for young people through headspace, Kids Helpline and the Butterfly Foundation
