COVID-19 Stimulus measures NSW

NSW support measures: ended and expanded programs

Written by Robyn Jacobson, CTA, Senior Advocate, The Tax Institute

   

Reporting final fortnights for JobSaver payment and the Micro-business grant

The end of JobSaver

On 30 November 2021, the primary form of COVID-19 business support provided by the NSW Government ended. The JobSaver program was co-funded by the Commonwealth and the NSW Government until NSW reached the 80% double COVID-19 vaccination target. Since then, the JobSaver payments have been funded wholly by the NSW Government although the amount of the payments tapered between October and the end of November.

The tapered payment rates are set out at Table 1 below.

JobSaver payments ended on 30 November 2021, and applications for the JobSaver payment are now closed. Recipients still need to need to reconfirm their eligibility for the final JobSaver fortnight from 22 November 2021 to 5 December 2021, however this can be done by 31 January 2022. The additional time means that reconfirmation of the final fortnight does not have to be done before the Christmas break.

While the decline in turnover calculation must be worked out for the whole of the final fortnight — from 22 November to 5 December 2021 — the final JobSaver payment covers the period only from 21 November to 30 November 2021. This is not a complete fortnight, so payments will be prorated accordingly so that the final JobSaver fortnightly payment covers a total of 10 days.

The decision to require reconfirmation of eligibility for the full fortnight but provide payments for only 9 days in the fortnight followed consultation with the Professional Bodies Working Group, of which The Tax Institute has been a key participant. This approach ensures that a 9-day comparison period does not have be determined to work out whether the requisite decline in turnover has been experienced by the business or not-for-profit (NFP) organisation for the final JobSaver period.

The schedule of JobSaver payments for the full program is set out at Table 2 below.

The end of the Micro-business grant

Similarly, payments under the Micro-business grant ended on 30 November 2021, and applications are now closed. Payments under the Micro-business grant also tapered as the program drew to a close.

Recipients still need to need to reconfirm their eligibility for the final Micro-business grant fortnight from 27 November 2021 to 10 December 2021, however this can be done by 31 January 2022.

While the decline in turnover calculation must be worked out for the whole of the final fortnight — from 27 November to 10 December 2021 — the final Micro-business grant payment covers the period only from 27 November to 30 November 2021. This is not a complete fortnight, so payments will be prorated accordingly so that the final Micro-business grant fortnightly payment covers a total of 4 days.

The tapered payment rates are set out at Table 1 below.

The schedule of Micro-business Grant payments for the full program is set out at Table 3 below.

Payment rates and schedules

TABLE 1: JobSaver and Micro-business Grant payment rates

The tapering of JobSaver payments reduced by 25% after 10 October 2021, and by 50% of that amount after the 80% double vaccination rate was reached. The tapering of the Micro-business Grant reduced by 50% after the 80% double vaccination rate was reached.

  JobSaver: % of weekly payroll Weekly JobSaver payment
(paid fortnightly)
Micro-business grant
Originally 40%

Employing: $1,500 to $100,000

Non-employing: $1,000

Registered charities (at least 15% and less than 30% decline in turnover): $1,500 to $100,000

Accommodation, hospitality and recreation with an aggregated turnover:

  • above $250m to $500m: Up to $300,000
  • above $500m to $1b: Up to $500,000
$1,500 per fortnight
From 10 October
(at 70% double vaccination)
30%

Employing: $1,125 to $75,000

Non-employing: $750

Charities: $1,125 to $75,000

Accommodation, hospitality and recreation businesses with an aggregated turnover:

  • above $250m to $500m: Up to $225,000
  • above $500m to $1b: Up to $375,000

(75% of the original amount)

At 80% double vaccination

15%

From 24 October unless in regional NSW

From 31 October for businesses and NFP organisations in regional local government areas1

Employing: $562.50 to $37,500

Non-employing: $375

Charities: $562.50 to $37,500

Accommodation, hospitality and recreation businesses with an aggregated turnover:

  • above $250m to $500m: Up to $112,500
  • above $500m to $1b: Up to $187,500

(37.5% of the original amount)

$750 per fortnight from 30 October 2021
After 30 November - - -

TABLE 2: Fortnightly JobSaver payment — full schedule

Payment Actual JobSaver payment calculation
Start and end dates
Customer period confirmations
Start and end dates
1 18 July to 31 July 2021 18 July to 1 August 2021
2 1 August to 14 August 2021 2 August to 15 August 2021
3 15 August to 28 August 2021 16 August to 29 August 2021
4 29 August to 11 September 2021 30 August to 12 September 2021
5 12 September to 25 September 2021 13 September to 26 September 2021
6 26 September to 9 October 2021 27 September to 10 October 2021
7 10 October to 23 October 2021 11 October to 24 October 2021
8 24 October to 6 November 2021 25 October to 7 November 2021
9 7 November to 20 November 2021 8 November to 21 November 2021
10 21 November to 30 November 2021
(10 days — not a full fortnight)
22 November to 5 December 2021

TABLE 3: Fortnightly Micro-business Grant payment — full schedule

Payment Customer period confirmations
Start and end dates
Micro-business grant payment
release date
1 26 June to 23 July 2021 30 July 2021
2 24 July to 6 August 2021 6 August 2021
3 7 August to 20 August 2021 20 August 2021
4 21 August to 3 September 2021 6 September 2021
5 4 September to 17 September 2021 20 September 2021
6 18 September to 1 October 2021 4 October 2021
7 2 October to 15 October 2021 15 October 2021
8 16 October to 29 October 2021 Dependent on reconfirmation
9 30 October to 12 November 2021 Dependent on reconfirmation
10 13 November to 26 November 2021 Dependent on reconfirmation
11

27 November to 10 December 2021

Payment covers only from
27 November to 30 November 2021 (4 days — not a full fortnight)
 

Dependent on reconfirmation

 

Points to note

  1. Businesses and NFP organisations are entitled to claim support payments only if they meet the eligibility conditions.
  2. Fortnightly reconfirmation of eligibility and employee headcount was required for the back end of the programs. Broadly, if a business or NFP received a payment for a fortnight when they did not experience the requisite decline in turnover or maintain the employee headcount, the business or NFP should advise Service NSW.
  3. In particular:
  • If a business or NFP confirmed they were eligible for a fortnight and they were eligible, it will correctly receive the support payment for that fortnight and could proceed with confirming the subsequent fortnight.
  • If a business or NFP confirmed they were eligible for a fortnight and they were not eligible, they should contact Service NSW and advise that they are not eligible. Arrangements can be made for the business or NFP to repay the funds.
  • If a business or NFP did not confirm they were eligible for a fortnight when required to do so, and they were eligible, it is expected they will not have received their payment until they confirmed that they are eligible.
  • If a business or NFP did not confirm they were eligible for a payment and they were not eligible, they may still have received the payment. They should advise Service NSW that they were not entitled to that payment. If they do not do so, they run the risk that they will be picked up in a compliance check and may be required to repay the overpayment. If a business or NFP has received payments they are not eligible for, they should arrange repayment by calling Service NSW on 13 77 88. In the meantime, ensure your clients set aside the funds so they can be readily repaid when required.

Expanded Small Business Fees and Charges Rebate

On 13 December 2021, the NSW Government advised that it has expanded the Small Business Fees and Charges Rebate (Rebate) to help businesses recover from the impacts of COVID-19.

Original Rebate

The Rebate has provided small businesses and NFP organisations whose total Australian wages are below the NSW Government 2020–21 payroll tax threshold of $1.2 million with a $1,500 digital voucher that can be used to offset the costs of eligible NSW and local government fees and charges due and paid from 1 March 2021.

These include, but are not limited to:

  • Food authority licences
  • Liquor licences
  • Tradesperson licences
  • Event fees
  • Outdoor seating fees
  • Council rates.

A full list of eligible fees and charges is available from this Service NSW webpage.

The Rebate is available until 30 June 2022.

Expanded Rebate

Under the expanded program, eligible small businesses and NFP organisations can access an increased rebate of $2,000 and claim road user tolls for business use. 

The Rebate can continue to be used to offset the costs of eligible NSW and local government fees and charges due and paid from 1 March 2021 to 30 June 2022. 

If you have already registered for the Rebate, you do not need to apply again. You will receive an automatic increase to your Rebate from $1,500 to $2,000. This increase will show in your balance when you log into your Service NSW Business Profile.

Applications remain open until 30 June 2022.  

This excludes the Central Coast, Wollongong, Shellharbour and the Blue Mountains.

Further guidance and information on:

  • JobSaver is available from this Service NSW webpage;
  • the Micro-business grant is available from this Service NSW webpage; and
  • the Rebate is available from this Service NSW webpage.

If you have any specific concerns that have not been outlined above, please email taxpolicy@taxinstitute.com.au

 

DISCLAIMER: The material and opinions in this article should not be used or treated as professional advice and readers should rely on their own enquiries in making any decisions concerning their own interests.

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