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COVID-19 FIGHTING FUND TO PROTECT BUSINESSES, SAVE JOBS AND SUPPORT NSW THROUGH LOCKDOWN
The NSW Government has partnered with the Commonwealth Government to deliver a comprehensive economic support package worth billions of dollars aimed at helping businesses and the people of NSW manage through the current COVID-19 lockdown.
The commitment will be up to $5.1 billion, including more than $1 billion from the Commonwealth as part of a business and employee support program to be implemented and administered by NSW.
The business grants program announced by the NSW Government two weeks ago has been expanded, along with a new grant program for smaller micro businesses whose turnover is between $30,000 and $75,000.
Thousands of employees will also be protected with NSW committing half of a new $2.1 billion business and employee support program to be delivered together with the Commonwealth.
Prime Minister Scott Morrison said as the pandemic evolved, so did the responses from the Commonwealth and State governments.
“We’ve been working closely with the NSW Government to ensure we can deliver targeted and timely support that gets where it needs to be as quickly as possible,” Mr Morrison said.
“As lockdowns extend into another week in NSW, households and businesses need this assistance to get them through the lockdown to the other side, ready to reopen.”
Premier Gladys Berejiklian said the comprehensive package had three key aims – protecting business, saving and keeping jobs through the lockdown and ensuring people had support during an uncertain and difficult time.
“We have always said we will do whatever it takes to protect the people of NSW and keep our economy strong, and that is exactly what we are doing,” Ms Berejiklian said.
“While our health and medical staff are fighting COVID-19 on the frontline, this comprehensive support package is aimed at saving jobs and protecting businesses until the lockdown is over.”
LOCKDOWN EXTENDED FOR GREATER SYDNEY AND NEW REQUIREMENTS FOR COVID-19 TESTING
Given the ongoing number of infectious cases in the community, the current lockdown will be extended for at least another two weeks until 11:59pm on Friday, 30 July.
This means the restrictions currently in place across Greater Sydney including the Central Coast, Blue Mountains, Wollongong and Shellharbour will remain in place until this time.
The NSW Government has also introduced new requirements for COVID-19 testing for Greater Sydney residents who travel to regional NSW for work.
For workers who live in Greater Sydney and their employers:
- A Greater Sydney worker must not enter premises for work that are more than 50 kilometres outside Greater Sydney unless the worker has been tested for COVID-19 in the previous seven days and has evidence of the test available for inspection by their employer or a police officer
- The employer must not permit a Greater Sydney worker to enter the premises unless the worker has been tested in accordance with these requirements
- If a worker is living in Greater Sydney and working more than seven consecutive days outside Greater Sydney, the worker must be re-tested.
Special conditions regarding COVID-19 testing are also in place for 'affected workers', being workers who live in the local government area of Fairfield.
A Greater Sydney worker, or their employer, has until 12.01am on Monday, 19 July to get tested and produce evidence of testing. For further information about COVID-19 testing requirements, visit https://www.nsw.gov.au/covid-19/rules/greater-sydney-workers.
For the latest information, visit www.nsw.gov.au/covid-19.
SUPPORT PACKAGE BACKS NSW BUSINESSES
The COVID-19 support package announced yesterday includes several initiatives to help businesses – and staff – withstand challenges arising from the current restrictions in place to limit the spread of the virus.
Treasurer Dominic Perrottet said the Government was offering support in as many areas as possible, with payroll tax cuts for eligible businesses and $26 million for the accommodation industry.
“We saw last year during the first lockdown the importance of protecting jobs and ensuring people remained connected with their workplace,” Mr Perrottet said.
“The value of our business grants package is now up to $2.1 billion with a 50 per cent increase.
“This is a mighty package aimed at ensuring the NSW economy bends in the storm but doesn’t snap. We will come out the other side with a few scrapes but more determined than ever.”
Not-for-profit and commercial performing arts organisations, as well as live music venues can apply for funding to keep the lights on and staff and performers in jobs, as part of the NSW Government’s $75 million stimulus package.
Minister for the Arts Don Harwin said the funding will provide an immediate cash injection and future certainty for those organisations reliant on box office sales.
“The NSW Government is providing a remarkable shot in the arm to the performing arts and live music sector. We understand the critical role the performing arts and live music sectors play in stimulating the economy and creating jobs,” Mr Harwin said
The NSW Government’s business grants program announced two weeks ago has been expanded, with grants between $7,500 and $15,000 available to eligible businesses with annual wages up to $10 million. A new grant program has also been introduced for smaller micro businesses with turnover between $30,000 and $75,000.
A new business support payment will be available to entities with an annual turnover between $75,000 and $50 million who can demonstrate a 30 per cent decline in turnover.
To receive the payment, eligible entities will be required to maintain their full time, part time and long-term casual staffing level as of 13 July 2021.
Eligible entities, which include not-for-profits, will receive payments of between $1,500 and $10,000 per week based on the level of their payroll. For non-employing businesses, such as sole traders, the payment will be set at $1,000 per week.
Businesses will benefit from payroll tax waivers of 25 per cent for businesses with Australian wages of between $1.2 million and $10 million that have experienced a 30 per cent decline in turnover.
Commercial and retail landlords will need to attempt mediation before recovering a security bond, or locking out or evicting a tenant impacted by the Public Health Order. Commercial, retail and residential landlords liable for land tax will be eligible for a land tax concession where they reduce the rent of their tenant.
Business NSW Chief Executive Daniel Hunter said: “This support will give business owners the opportunity to retain their staff and give them the best chance to rebound their operations when the lockdown finishes. What is crucial now is for the support money to start flowing as quickly as possible the Government has assured business applications will open later this month with the money to be paid days after that.”
Australian Chamber of Commerce and Industry Acting CEO Jenny Lambert said: "So many SMEs who fought to stay in business in 2020 are back to square one as a result of this crisis. This is a strong package, and we appreciate the swift and coordinated response by the Federal and NSW Governments.”
KEY COMPONENTS OF THE 2021 COVID-19 PACKAGE
The Commonwealth and State Government support package for NSW businesses and residents includes:
- An extension of the NSW Government business grants program for eligible businesses with Australian wages below $10 million able to claim grants between $7,500 and $15,000 to cover the first three-weeks of restrictions, taking the program to a potential $2.1 billion
- Up to $2 billion to provide cashflow support to businesses to help them retain staff
- Payroll tax waivers of 25 per cent for businesses with Australian wages of between $1.2 million and $10 million that have experienced a 30 per cent decline in turnover, as well as payroll tax deferrals and interest free repayment plans
- A new grants program for micro businesses with a turnover of between $30,000 and $75,000 which experience a decline in turnover of 30 per cent. The businesses will be eligible for $1500 per fortnight of restrictions
- A capped grant of up to $1,500 for residential landlords who are not liable to pay land tax who reduce rent for tenants estimated at $210 million
- Land tax relief equal to the value of rent reductions provided by commercial, retail and residential landlords to financially distressed tenants, up to 100 per cent of the 2021 land tax year liability
- Introduction of legislative amendments to ensure a short-term eviction moratorium for rental arrears where a residential tenant suffers loss of income of 25 per cent due to COVID-19 and meets a range of criteria
- No recovery of security bonds, or lockouts or evictions of impacted retail and commercial tenants, prior to mediation
- 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 to be administered by Create NSW
- A support package for the accommodation sector worth $26 million
- $12 million in additional funding for temporary accommodation for those at risk of or experiencing homelessness
- $5.1 million in NSW funding to support mental health.
VISITOR ECONOMY STAKEHOLDERS WELCOME VITAL SUPPORT
Peak industry bodies representing businesses engaged in the NSW visitor economy have welcomed the targeted support package announced yesterday.
Tourism Accommodation Australia (TAA) reports that, prior to the current lockdown, Sydney hotels were at sub 50 per cent occupancy and facing substantial cancellations all the way through to August due to border closures and CBD lockdowns around the country. It then dropped to 2 per cent occupancy overnight with the Greater Sydney lockdown.
“Thousands of our staff in Greater Sydney are stood down and many more in the regions have had reduced hours because of cancellations due to the lockdown and border closures,” TAA NSW CEO Michael Johnson said.
“These revised disaster payments will allow our staff to get through this period without having to leave our industry altogether,” he said.
Accommodation Association CEO Dean Long said: “Our people and our properties, especially those in Sydney and Melbourne, have been so hard hit as a result of the international travel ban, the ongoing border closures and most recently the Melbourne and Sydney shutdown.”
Tourism & Transport Forum (TTF) CEO Margy Osmond said: “TTF supports these tourism sector specific packages but will continue to advocate strongly for an attractions support package to assist NSW attractions operators who have long been operating without any international tourists and have lost both interstate and now intrastate markets.
“TTF will also continue to push for support to continue for the longer term beyond lockdowns, as it is the long-term sustainable industries of tourism, transport and aviation, that if supported during the critical recovery period, will pay dividends to state economies and the national economy over many decades to come.”
LOCKDOWN LIFELINE: MENTAL HEALTH SUPPORT PACKAGE FOR NSW
People in mandatory isolation will have access to around the clock wellbeing and mental health support, and there will be increased access to services for parents, young people and multicultural communities who are struggling during the lockdown.
As part of the joint Commonwealth and NSW Government package, NSW will provide $5.1m for a range of mental health services across NSW.
Treasurer Dominic Perrottet said the top priority was keeping people safe during the pandemic, and not just from the current COVID-19 outbreak.
“We know this will be a very difficult period for many, the additional funding will provide more mental health support particularly for young people and families,” Mr Perrottet said.
Minister for Mental Health Bronnie Taylor said the COVID-19 investment would enable providers to immediately increase their support during this period.
“Looking after your mental wellbeing is vital during this time and with thousands of people and families in isolation, access to services 24 hours 7 days a week is hugely important,” Mrs Taylor said
“We know this can be a stressful time for families, parents and children, and these new and existing services available now 24 hours 7 days a week, means there is an avenue for people to reach out for advice or help.”
The joint package includes:
- $7 million for headspace outreach support to parents and young people across Greater Sydney
- $3 million for Sonder to provide anyone subject to a mandatory 14-day isolation order with 24/7 health and wellbeing support, with an emphasis on early intervention, for the entire duration of their isolation period
- $3 million to support Culturally and Linguistically Diverse (CALD) communities, with a focus on communities in South West and Western Sydney. The funding will go to Beyond Blue and the Primary Health Networks (PHNs) to ensure multicultural communities have access to services and appropriate language translation services
- $2 million for Primary Health networks across Sydney to increase their mental health services across all areas
- $1.5 million for Lifeline to boost crisis counselling services
- $150,000 for Gidget Foundation to provide counselling services for parents suffering from perinatal depression and anxiety
- Free access for 8,000 new parents to the Tresillian SleepWell baby app, through a funding injection of $100,000.
Kids Helpline will also be able to extend online wellbeing sessions to secondary schools with a funding boost of $300,000 and the Butterfly Foundation will also receive $300,000 to provide additional support for young people with, or at risk of, an eating disorder and their carers.
GRANT PROGRAMS HERE TO HELP RESIDENTS AND THE COMMUNITY
Under the combined Commonwealth and State Government support package, the COVID-19 Disaster Payment will be further expanded and increased.
Premier Gladys Berejiklian said the support package would help businesses and families across NSW get through a difficult period.
“Our number one priority remains the health and safety of the people of NSW while also keeping our economy strong as we manage the current COVID-19 challenge,” Ms Berejiklian said.
“We are pleased to be able to increase our targeted support in conjunction with the Commonwealth and this assistance will ensure we get through the lockdown and come out stronger on the other side.”
From week four of a lockdown because of a Commonwealth Government declared hotspot, the COVID-19 Disaster 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 COVID-19 Commonwealth Disaster Payment will be available to those outside Commonwealth declared hotspots in NSW that meet the criteria for the payment, funded by the NSW Government. The Commonwealth will continuenue funding payments to recipients in a Commonwealth declared hotspot.
Further, residential tenants will have greater protection with a targeted eviction moratorium.
Residential landlords who decrease rent for impacted tenants can apply for a grant of up to $1,500 or land tax reductions depending on their circumstances.
