New COVID-19 support package to help businesses

The NSW Government has announced a major new grants package and changes to the Dine & Discover program to help tens of thousands of small businesses and people impacted by the current COVID-19 restrictions. The package includes grants of between $5,000 and $10,000 for small businesses, payroll tax deferrals for all employers, an extension of the Dine & Discover program and the ability for people to use the vouchers for takeaway delivered directly to their home by the venue itself. The small business support grants will help businesses by alleviating cashflow constraints while trading is restricted. This can be used for business expenses such as rent, utilities and wages, for which no other government support is available. Three different grant amounts will be available for small businesses depending on the decline in turnover experienced during the restrictions - $10,000 for a 70 per cent decline, $7,000 for a 50 per cent decline and $5,000 for a 30 per cent decline. Businesses will be able to apply for the grants through Service NSW from later next month and will need to show a decline in turnover across a minimum two-week period after the commencement of major restrictions on June 26. The grants will be divided into two streams: 1. Small Business COVID-19 Support Grant. Available to businesses and sole traders with a turnover of more than $75,000 per annum but below the NSW Government 2020‑21 payroll tax threshold of $1,200,000 as at 1 July 2020. These businesses must have fewer than 20 full-time equivalent employees and an ABN registered in NSW or be able to demonstrate they are physically located and primarily operating in NSW. 2. Hospitality and Tourism COVID-19 Support Grant. Available to tourism or hospitality businesses that have a turnover of more than $75,000 and an annual Australian wages bill of below $10 million, as at 1 July 2020. These business must have an ABN registered in NSW or be able to demonstrate they are physically located and primarily operating in NSW. Other key elements of the package include:

  • Dine & Discover vouchers will be able to be used for takeaway from eligible and registered Dine businesses during the restriction period. Delivery direct to the home by the restaurant or café is recommended. Food may be picked up from venue but check in with QR code is required. Dine & Discover vouchers cannot be redeemed for takeaway using third party delivery platforms.

  • A further one-month extension of Dine & Discover vouchers until August 31 to allow people more time to use them.

  • More than $11 million for increased support for people at risk of homelessness plus assistance to vulnerable temporary visa holders, asylum seekers and refugees.

  • An optional deferral of payroll tax payments due in July and the deferral of hotel June quarter gaming machine tax, with the Chief Commissioner of State Revenue able to provide for appropriate repayment arrangements on a case-by-case basis.

More information is available on the Service NSW website by clicking here.