New South Wales Treasurer Dominic Perrottet on Tuesday announced a business support package which will see small businesses with fewer than 20 full-time employees, and payrolls up to $1.2 million with turnover of $75,000 a year, receive support payments of up to $10,000.
The eligibility criteria have been broadened, though, for businesses in the tourism, hospitality and accommodation sectors, which will be eligible with payrolls of up to $10 million.
Businesses that suffer turnover reductions of more than 70 per cent and meet the eligibility criteria will receive the full payment of $10,000, while those that suffer a reduction of 50 per cent will receive $7,000, and those that suffer a reduction of 30 per cent will receive $5,000.
Meanwhile, hotel operators have been offered a deferral on the payment of their payroll and gaming tax liabilities until August.
The state’s budget, handed down by Treasurer Dominic Perrottet last week, allotted $5.1 billion for combating COVID-19, $800 million of which is set to be spent by the end of the 2021 calendar year.
“The NSW economy rebounded strongly from the challenges of 2020 and we’re taking action to ensure we keep that going,” Mr Perrottet said.
“We are deploying our fiscal firepower when it matters, by helping small businesses stay in business and keep people in jobs.”
The state’s support will be offered in addition to the Commonwealth’s COVID-19 disaster payment, which Prime Minister Scott Morrison said will be made to affected workers from 1 July.
Workers who are unable to work because of lockdown restrictions will be eligible for $500 a week if they normally work more than 20 hours each week, and those who work less than 20 hours receive $325 weekly until restrictions ease.
Eligible workers will include Australian citizens, residents and visa holders who are permitted to work in Australia and aged 17 and older.
John Buckley is a journalist at Accountants Daily.
Before joining the team in 2021, John worked at The Sydney Morning Herald. His reporting has featured in a range of outlets including The Washington Post, The Age, and The Saturday Paper.