What lockdown support is available to business?
If your business has been adversely impacted by the recent lockdown in NSW, support is coming.
The NSW and Federal Governments have announced a series of new measures to support business during extended lockdowns of four weeks or more.
- Up to $15,000 through the expanded NSW 2021 COVID-19 business grants program
- Up to $10,000 cashflow support per week
- NSW micro business grants
- NSW payroll tax deferrals and a 25% payroll tax waiver
- NSW Rent protections and grants
- NSW Sector support for the arts and accommodation sector
You can streamline the process of applying for business support by ensuring:
- Your business and contact details are up to date on the Australian Business Register
- Your personal and business details are up to date and you have a MyServiceNSW account with a business profile
“Up to $15,000 through the expanded 2021 COVID-19 Business Grants program is available for eligible businesses adversely impacted by extended lockdowns.”
2021 COVID-19 Business Grant of up to $15,000
The previously announced small business grants have been increased to up to $15,000 and expanded to eligible businesses (including not-for-profits and sole traders) with annual wages of up to $10 million.
The value of the grant is determined by the impact of the lockdown on your turnover.
Your business will need to prove a decline in turnover across a minimum 2 week period after the commencement of the major restrictions.
| Decline in turnover | Grant |
| 70%+ | $15,000 |
| 50% or more | $10,500 |
| 30% or more | $7,500 |
Eligibility
The full eligibility criteria, including how the decline of turnover test will be applied, have not been released as yet. In general, your business will need to have a NSW registered ABN or be able to demonstrate it is physically located and primarily operating in NSW with turnover of more than $75,000 per annum (for businesses under this threshold see $1,500 Micro Business Grants).
We will work with you once the details have been released to help you assess your eligibility and apply for the grant.
How to apply
Applications open on 19 July 2021 through ServiceNSW.
Cashflow Support of up to $10,000
A cashflow payment between a minimum of $1,500 and maximum of $10,000 per week based on 40% of the NSW payroll payments of your business (including not-for-profits).
Businesses without employees that meet the eligibility criteria such as sole traders, will be able to access a payment of $1,000 per week.
The cashflow support will cease when lockdown restrictions are eased or when the Commonwealth hotspot declaration is removed.
Eligibility
- Annual turnover between $75,000 and $50 million
- Demonstrate a 30% decline in turnover
- Maintain your full time, part time and long term casual staffing level as of 13 July 2021
- Impacted by the current Greater Sydney COVID-19 restrictions
The full eligibility details, including how the decline in turnover test and how the headcount will work have not been released as yet.
How to apply
Applications for the cashflow support have not yet opened but you can register your interest from 14 July 2021 through ServiceNSW.
$1,500 Micro Business Grants
A new grant for micro businesses (including sole traders) providing $1,500 per fortnight while lockdown restrictions apply. The grants are available from week one of the lockdown until restrictions are eased.
Eligibility
- Annual turnover of more than $30,000 and less than $75,000
- Demonstrate a 30% decline in turnover
- Impacted by the current Greater Sydney COVID-19 restrictions
How to apply
Applications for the cashflow support have not yet opened but you can register your interest from 14 July 2021 through ServiceNSW.
Payroll tax relief
“Cash-flow support of up to $10,000 per week — or $1,000 per week for sole traders — may be accessed if turnover has fallen at least 30 per cent.”
Payroll tax and lodgement deadline deferred
NSW payroll tax has been deferred for July and August 2021 until 7 October 2021 for all businesses.
The due date for the 2020-21 annual reconciliation has also been deferred until 7 October 2021.
Previous payroll tax deferrals and payment arrangements for 2020-21 due in July 2021 have not been deferred.
25% payroll tax waiver for businesses between $1.2m and $10m
Businesses with Australian wages of between $1.2 million and $10 million that have experienced a 30% decline in turnover, will be provided with a 25% payroll tax waiver in 2021-22. Further details of the reduction will be available by the end of August from RevenueNSW.
Rent protections and grants
Commercial and retail rent protections will be reinstituted.
Eviction moratorium
Legislative amendments will be introduced shortly providing a short-term eviction moratorium for rental arrears where a residential tenant suffers loss of income of 25% due to COVID-19 and meets certain other criteria.
Commercial and retail landlords will need to attempt mediation before recovering a security bond, or locking-out or evicting a tenant impacted by Public Health Orders.
Land tax relief
Land tax relief equal to the value of rent reductions provided by commercial, retail and residential landlords to financially distressed tenants will be available for up to 100% of the 2021 land tax liability.
Specific sector based support
Arts community
A $75 million support package will be provided to the performing arts sector to be administered by Create NSW.
The package will be delivered in two stages:
- Immediate support to provide relief to eligible organisations who were staging performances during the period covered by the Public Health Orders.
- Funding available to support eligible organisations to reschedule performances once it is safe for restrictions to ease.
Eligible organisations include performing arts organisations with heavy reliance on box office income, including not-for-profit performing arts companies who were staging, or scheduled to stage performances during the lockdown period, commercial producers and some live music venues.
Organisations will need to provide evidence of performances scheduled, venues and average ticket prices.
CreateNSW will open applications from 23 July 2021.
Accommodation sector
A $26 million support package will be provided to the accommodation sector.
No further details are available at present.
If you have any questions or would like to speak to one of our team, please do not hesitate to contact us.
About the author
Marius Fourie - Director & Business Advisor
As Director and Business Advisor, Marius uses his accounting expertise and empathetic skills to work directly with business owners and help them feel at ease with their finances.
Marius saw a common need in clients that just wasn’t being met by accounting providers.
That need was for clear, open communication and streamlined accounting services that didn’t come padded out with any unnecessary features.
Business owners just don’t have time to compare different accounting firms to see which one has the best packages with the best inclusions (many of which they would pay for but never use).
Key Takeaways
Multiple Support Measures Were Available
Businesses could access a mix of federal and state-based support, depending on their circumstances and location.
Eligibility Rules Were Strict
Meeting decline-in-turnover tests and other criteria was essential to qualify for assistance.
Sole Traders Were Included
Government support wasn’t limited to companies — many sole traders and small operators were also eligible.
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Frequently Asked Questions
What government support was available to businesses during lockdowns?
Support measures included cash flow assistance, wage subsidies, grants, concessions and loan programs designed to help businesses manage reduced income and ongoing expenses during lockdown periods.
Who was eligible for lockdown business support?
Eligibility generally depended on factors such as turnover, location, industry, and whether the business experienced a decline in revenue due to government-mandated restrictions.
Were sole traders eligible for government support?
Yes. Many support measures applied to sole traders and small business operators, provided they met the relevant turnover and income decline tests.
How were payments assessed or calculated?
Payments were usually based on a percentage decline in turnover compared to a previous period, with thresholds determining the level of assistance available.
Did government support payments affect tax obligations?
Some support payments were assessable income, while others were tax-free. Correct reporting and record-keeping were essential to ensure compliance.
What lockdown support was available for NSW businesses affected by COVID-19 restrictions?
North Advisory explains that if your business was impacted by the NSW lockdowns, both the NSW and Federal Governments announced support measures including the expanded NSW COVID-19 business grants (up to $15,000), weekly cashflow payments, micro business grants, plus assistance like payroll tax deferrals/waivers and rent protections/grants. They also recommend preparing early by ensuring your ABR details and Service NSW business profile are up to date to streamline applications
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