The New South Wales and Commonwealth Governments have announced a joint support package for businesses and individuals impacted by the lockdown.
The support package sees an increase in the COVID-19 Disaster Payment from week four of a lockdown and a 50/50 cost sharing arrangement between the Commonwealth and the NSW Government for a new and expanded small to medium business support package.
From today, NSW businesses can register their interest to receive the support, which allows eligible businesses to receive 40% of their NSW payroll payments, at a minimum of $1500 and a maximum of $10,000 per week.
Businesses will be eligible if their turnover is 30% 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.
The commonwealth has also provided further tax relief for businesses including:
- 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.
Speaking on the package, National Retail Association CEO Dominique Lamb said the package comes at a crucial time.
"For each week large parts of New South Wales remain in lockdown retailers in those areas are losing a combined $1 billion in sales.
"Retailers understand that when COVID cases explode that restrictions such as lockdowns are needed to contain the situation.
"However, that also means that affected businesses require support so that they can stay afloat and that everyday Australians don’t end up on the jobless scrap heap.
"At a time of great urgency, NRA members across New South Wales are grateful that both levels of government have worked together to jointly fund a much needed support package," she said.
Meanwhile, individuals who have lost work due to the lockdown will be able to claim the COVID-19 Disaster Payment.
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.
The government has also streamlined access to the payment, introducing a recurring payment for approved individuals, removing the need to reapply each seven day period of lockdown.
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.
This new arrangement of the COVID-19 Disaster Payment also sets out a blueprint of support for any future lockdowns.
Additionally, the program will deliver a $17.35 million mental health support package for NSW, boosting services for people across the state.
Australian Retailers Association CEO Paul Zahra welcomed the elevated mental health support but said that the vaccination rollout offers a long-term solution to lockdowns.
"Lockdowns have a heavy social and economic cost.
"It’s taking a toll on people’s health and wellbeing, and we are pleased to see the additional mental health supports.
"The vaccination program is critical. It’s the only way we’ll seen an end to these sorts of lockdowns and restrictions that are devastating businesses and livelihoods.
"The ARA is working closely with the Federal Government and other industry groups on solutions to expediate the vaccine rollout.
"The retail industry stands ready to support this effort in whatever way it can," he said.