Special

NSW COVID Micro - business support grants

28 July. ‘21

Housekeeping

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Housekeeping§ At stages during the presentation we will stop for

questions

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Q&A

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Chat

Your Presenters

Matthew AddisonExecutive Director

Leanne BerryResources and Support

§ COVID safe Workplan§ QR Codes§ Masks

§ Reduce Mobility- Work from home if you can

§ Vaccinations

Business Strategy

§ Nothing is JobKeeper!§ Payroll data is seen!§ Don’t commit fraud§ Document it – copy website and in writing

§ Keep watch – www.icb.org.au/resources/business-matters/covid-19-resources-2021

§ NSW Business Grant webinar from Friday 23July § JobSaver – Guidelines issued – ICB Information to follow

General Principle

New South WalesMicro Business Grant

§ Micro-businesses requiring assistance with their online application can contact Service NSW on 13 77 88.

§ https://www.service.nsw.gov.au/transaction/2021-covid-19-micro-business-grant

§ https://www.service.nsw.gov.au/2021-covid-19-micro-business-grant-guidelines

Assistance

Which Grant?

§ NSW Govt PDF which outlines grants for individuals, micro and small NFP and SMB is an easy visual to help to explain for business owners

COVID-19 Support for individuals and businesses (nsw.gov.au)

Support for Micro

§ Micro-business means a business that:§ holds an Australian Business Number (ABN)§ has aggregated annual turnover of more than $30k but less than

$75,000, and§ has fewer than 20 FTE employees as at 1 June 2021§ Micro-business owner is a sole trader, partnership, private company

or trust that carries on a business.

Micro Business

2021 COVID-19 Micro-business grant

Small BusinessSole TraderNot-for-Profit

Aggregated annual turnover: $30k to $75kImpacted by COVID-19$1500 per fortnight

Cover Business expenses

Open est 26 JulyCloses. 18 October 2021

Payments made in arrearsBackdated to 26 June

§ The 2021 COVID-19 micro-business grant provides cashflow support for micro-businesses in New South Wales who have had their work impacted by the restrictions while continuing to incur business costs.

Concept – NSW 2021 COVID-19

§ 2021 COVID-19 Business Grants means the scheme delivered by DCS, Service NSW, the Commonwealth Government and NSW Treasury to support businesses and not-for-profit organisations with a one-off payment to help meet business costs incurred from 1 June 2021 to 17 July 2021 due to the impacts of the Public Health Order.

- Public Health (COVID-19 Temporary Movement and Gathering Restrictions) Order 2021 issued on 26 June 2021

- stay-at-home order issued on 25 June 2021- stay-at-home order issued on 27 May 2021.

COVID-19 Restrictions

§ 4.2 The Grant must only be used for expenses for which no other government support is available. For example, the Grant cannot be used to pay Government fees and charges that would be covered by the $1,500 Small Business Fees and Charges Rebate.

§ 5.4 Businesses that received the $1,500 Small Business Fees and Charges Rebate can apply for this Grant.

Different Expenses

Eligible applicants can use the grant for business costs incurred from 1 June 2021 and for which no other government support is available, including:§ salaries and wages§ utilities and rent§ financial, legal or other advice§ marketing and communications§ perishable goods§ other business costs.

Purpose of Grant

costs that business and not-for-profit organisations incurred in meeting unavoidable business costs from 26 June 2021. Eligible Expenses include (but are not limited to) the following:(a) unavoidable business operating expenses, such as salaries, wages, utilities, or rent;(b) the cost of perishable goods that can no longer be used;(c) financial, legal or other advice to support business continuity planning;(d) marketing and communications activities to develop the business; and(e) other activities to support the operation of the business.

Eligible Expenses

§ 5.1 Applications will open on 26 July 2021 and close at 11:59pm on 18 October 2021.

§ 5.2 Once deemed eligible,- businesses will receive automatic fortnightly payments.- Businesses will not need to re-apply

§ businesses with employees must notify Service NSW if they are not maintaining the number of employees they had on 13 July 2021.

§ 5.3 Payments will be made in arrears with the first payment backdated to 26 June 2021.

Process

Eligibility

• have an active Australian Business Number (ABN)• demonstrate your business was operating in NSW as at 1 June 2021• Aggregated annual turnover $30k to $75k for year ended 30 June 2020

• Decline in turnover of 30% or more• 2 week test period within Greater Sydney Lockdown• 26 June to end of lockdown• Compare to same period 2019

• Not applied for business grant or JobSaver• Maintain employee headcount as at 13 July 2021• Non-employing sole-trader: primary source of income

§ 5.5 Only one application can be submitted for a single ABN.§ 5.6 Only one application is permitted where there are multiple

businesses under a single ABN.

Eligibility #2

§ (e) they have not applied for either the 2021 COVID-19 Business Grant, or the JobSaver scheme;

§ 3.4 Where an individual owns more than one Non-employing Business, an application for payment must only be made in respect of one Non-employing Business.

§ 3.5 Non-employing Businesses are not eligible to apply if persons associated with the business, and who derive income from it, have received a Commonwealth COVID-19 Disaster Payment.

§ 3.6 Employees can receive Commonwealth COVID-19 Disaster Payments if their employer is receiving the Grant.

Eligibility #3

§ the Income Tax Assessment Act 1997aggregated turnover definition will be applied when assessing whether an applicant had national aggregated annual turnover of more than $30,000 and less than $75,000.

Aggregated Annual Turnover

§ the Goods and Services Tax (GST) turnover as defined in A New Tax System (Goods and Services Tax) Act 1999 (Cth) (GST Act) will be applied when assessing whether an applicant experienced a 30% or more decline in national turnover.

Decline in Turnover

§ the business receiving payments must be the primary income source for the associated person. Must be declared

§ Individuals with more than one non-employing business may only claim payments for one business.

§ are not eligible to apply if persons associated with the business, and who derive income from it, received a Commonwealth COVID-19 Disaster Payment.

Non-Employing Business

§ Non-employing business if any associated person has applied for disaster payment- Employing businesses are eligible for grant and employees are eligible for

Disaster payment§ primarily passive income (rent, interest, dividends)§ a company in liquidation or provisional liquidation§ is an individual who has entered bankruptcy§ has been found to have been engaged in fraud§ the business registered its Australian Business Number (ABN) after 1 June 2021.

Ineligible businesses

§ a MyServiceNSW Account§ your proof of identity§ your valid ABN/ACN number§ your business banking details for payment§ a business activity statement (BAS)§ Australian income tax return or Notice of Assessment

What you need

§ Australian driver licence§ Medicare card§ Australian passport§ Australian birth certificate§ Australian travel visa§ Australian citizenship certificate§ Australian certificate of registration by descent§ Australian ImmiCard.

Two proof of identity docs required

§ declare that you meet the eligibility criteria§ submit evidence of:- your business' decline in turnover of 30% or more over a

minimum 2-week period within the Greater Sydney lockdown- an aggregated annual turnover between $30,000 and $75,000 for

the year ended 30 June 2020.§ lodge other supporting documents, as required, to demonstrate you

meet the eligibility criteria.

Evidence

§ submit evidence they had an aggregated annual turnover of more than $30,000 and less than $75,000 for the year ended 30 June 2020. This can be in a form of a:- letter from a qualified accountant, registered tax agent or

registered BAS agent; or- business activity statement (BAS); or- business bank account statement (separate from any personal

accounts); or- Australian income tax return (or Notice of Assessment) –

businesses can choose to redact their tax file number.

Aggregated Annual Turnover

§ over a minimum 2-week period - commenced 26 June and due to end 30 July 2021- compared to the same period in 2019.

§ within the Greater Sydney lockdown § This will in the form of a:- letter from a qualified accountant, registered tax agent or

registered BAS agent, or- business bank account statement (separate from any personal

accounts).

Decline in Turnover - Evidence

Where required, evidence must be in the form of a:§ letter from a qualified accountant, registered tax agent or registered

BAS agent using the template provided, or§ business bank account statement, or§ business activity statement (BAS), or§ Australian income tax return or Notice of Assessment.Businesses that cannot provide sufficient evidence are ineligible for the grant.

Evidence, when required

§ 6.6 Service NSW can request a combination of the following documents to support its determination of eligibility:

§ accountant’s letter§ prior Business Activity Statements§ Australian tax returns (or Notice of Assessment)§ profit and loss statements prepared by a qualified accountant§ receipts and invoices from sales§ business bank account statements (separate from any personal

accounts).

Evidence

?

§ 6.3 Micro-businesses …. with their ABN registered elsewhere should contact Service NSW, Or

§ if they can provide evidence their business was primarily operating in New South Wales on 1 June 2021.

§ Evidence includes commercial rates notices or lease agreements.§ Service NSW may accept a combination of the following:- utility bills- insurance papers- supply invoices- registration papers- contractor licences.

Alternative Circumstances – location must be NSW

§ businesses not operating for the full year to 30 June 2020 (e.g., new businesses)

§ businesses affected by drought, bushfires or other natural disasters§ business acquisition, disposal or business restructure that has

impacted the business' turnover§ a sole trader or small partnership impacted by sickness, injury or

leave.Contact Service NSW to determine if an alternate comparison period, or alternative supporting evidence, can be applied.

Alternative Circumstances – alternative comparison period

§ for employing businesses, § they must maintain their employee headcount on 13 July 2021 - while they continue to receive grant payments

§ businesses that do not maintain their headcount agree to notify Service NSW

Declare: they will maintain their employee headcount on 13 July 2021 for the

period for which the business is receiving grant payments and notify Service NSW if employee headcount declines over the period of the payment due to any actions of the business,

Maintain Headcount

§ Employee has the same meaning as its ordinary or common law meaning. Where it is not known whether there is an employer/employee relationship, businesses and not-for-profits should consider the guidance provided by the ATO.

§ Employee headcount: the number of persons who are employed in New South Wales and who are permanent (full-time or part-time), or casual staff that have been employed by the business for more than 12 months.

§ Maintain their employee headcount means the employer will not take active steps to end the employment relationship with their employees. Employees who have been stood down under the Fair Work Act 2009 or take leave without pay are considered employees for the purpose of headcount. Businesses will remain eligible if their employee headcount declines for reasons outside the control of the employer, for example if employees voluntarily resign.

Maintain Headcount

§ 3.1 A business or not-for-profit organisation can apply for a payment under the Program via the MyServiceNSW Business Profile within the MyServiceNSW Account. An application may be made by:

§ (a) an owner of the business or a person authorised to apply on their behalf, or

§ (b) a person authorised to apply on behalf of a not-for-profit organisation.

Owner or a person authorised

Qualified accountant, registered tax agent or registered BAS agentmeans an Independent Practitioner that is a:§ qualified accountant as defined in the Corporations Act 2001;§ registered tax agent as defined under the Tax Agent Services Act

2009; or§ registered BAS agent as defined under the Tax Agent Services Act

2009.

Independent practitioner: is not an employee or director of the applicant, an associated entity of the applicant, or a director or employee of an associated entity of the applicant.

BAS Agents can help / sign letter

§ 1.3 By applying to receive a payment under the Program, businesses and not-for-profit organisations agree to be bound by these Terms and Conditions.

Obligations

Service NSW can request a combination of the following documents to support its determination of eligibility and use of funds under this grant's Terms and Conditions:§ accountant’s letter§ prior business activity statements§ Australian tax returns (or Notice of Assessment)§ profit and loss statements prepared by a qualified accountant§ receipts and invoices from sales§ business bank account statements.You'll need to keep all documentary evidence used for your application for a minimum of 5 years.

If you are Audited

§ their application may be subject to an audit by the NSW Government or its representatives and agree to participate in the process if required, and

§ Service NSW and Revenue NSW may use other data provided by applicants to other government agencies to assist with determining eligibility for the Grant.

§ A public reporting channel will be established to allow people to report employing businesses not adhering to these Guidelines.

By applying for this Grant, applicants agree

§ Wednesday 4pm

§ Questions into the Q&A

Additional Webinar

§ Rationale§ Reasonable§ Realistic§ Professional

§ Document It !

Questions?

Thank You!admin@icb.org.au 1300 856 181