The Federal Government is increasing the COVID disaster payment to $750 for workers who have lost more than 20 hours a week of work, as NSW extended its lockdown by one month. The expanded NSW COVID-19 Business Support Payment will now cover 400,000 businesses employing 3.3 million workers.
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With Greater Sydney set to remain in lockdown until at least 28 August, the Commonwealth and NSW governments agreed to expand the NSW COVID-19 Business Support Payment. Victorian small and medium businesses will also receive extra support to recover from the recent lockdown under a new jointly funded package from the Commonwealth and Victorian Governments.
The NSW payment will now cover more than 400,000 businesses employing 3.3 million workers in NSW, subject to eligibility. Under the expanded payment, eligible entities, which includes not-for-profits, will now receive payments of between $1,500 and $100,000 per week based on the level of their payroll, with the maximum turnover threshold increased from $50 million to $250 million.
The payment will continue to be calculated based on 40 per cent of payroll for businesses that have suffered a 30 per cent or more decline in turnover.
For non-employing businesses, such as sole traders, the payment will remain set at $1,000 per week.
“The payment will also provide more substantial support for businesses to cover unavoidable costs such as rent, insurance and maintenance as well as employee costs during an extended lockdown,” said a statement from the Prime Minister’s Office.
“The expanded support will continue to be conditional on businesses maintaining their employee headcount as at 13 July (covering permanent and long-term casual employees) by not taking active steps to terminate their employment. This will help maintain the connection between employers and employees and in doing so support the economic recovery once restrictions are eased.”
The expanded payment will take effect from 18 July 2021, the start of the program. Businesses that have already submitted an application will not need to do anything, their payment will be automatically adjusted consistent with the expanded program.
Workers who have lost hours will continue to be supported by the COVID-19 disaster payment with more than 812,000 claims granted in NSW to date with more than $411 million in weekly payments.
“These businesses are the ones we all need still standing to drive the recovery on the other side,” the Prime Minister said. “Our support has never been set and forget and even before Service NSW had started to deliver the support on Monday that we announced earlier this month, my government had been looking at what else businesses would require to strongly emerge on the other side of this lockdown.”
Up to an additional 1,900 businesses employing around 300,000 people could benefit from the expanded eligibility while increasing the cap will also make the payment more generous for some businesses currently accessing support, according to Treasurer Josh Frydenberg .
Businesses should contact Services NSW or visit https://www.service.nsw.gov.au/ for more information.
Victorian Business Support Package
The new Victorian Business Support Package will deliver an additional $400 million in support to thousands of businesses, with funding to be split 50/50 between the Commonwealth and Victorian Government.
The package includes a new $85 million Small Business COVID Hardship Fund and $156 million Business Continuity Fund, as well as delivering support for commercial tenants and landlords. It will also build on Victorian Government support for licenced hospitality and alpine venues, with $70 million for the Licensed Hospitality Venue Fund 2021 and $9.8 million for Alpine Business Support.
The Premier of Victoria Daniel Andrews said, "This package is all about jobs – protecting and growing jobs to support Victoria's economic recovery. With this funding we'll continue driving jobs and economic recovery here in Victoria, and for the nation."
Key elements that make up the support package include:
Business Continuity Fund
A $156 million Business Continuity Fund will be established to deliver $5,000 grants to up to around 30,000 businesses that remain impacted by capacity limits placed on businesses by necessary public health restrictions.
Commercial Tenancy Relief Scheme and Landlord Hardship Fund
The package, to be fully funded by the Victorian Government, will deliver $80 million to provide support to landlords that provide rent relief to their tenants.
The Commercial Tenancies Relief Scheme will be reinstated to provide much needed rent relief to small to medium commercial tenants and their landlords with more details on the roll out to be provided by the Victorian Government soon.
Small Business COVID Hardship Fund
A new $85 million fund will be established to support small businesses who have not been eligible under existing business support funds.
Small businesses with a payroll of up to $10 million who have experienced a 70 per cent or greater reduction in revenue will be eligible for grants of up to $5,000.
