ASF TAKEAWAYS: You may be eligible for a payment under the 2022 Small Business Support Program on meeting the eligibility criteria. This NSW state-funded program provides cash flow support to help eligible businesses survive the impacts of COVID-19 and maintain their NSW employee headcount.
Applications are now open and close on 31 March 2022.
If you are operating a business in NSW (sole trader, partnership, company or not-for-profits) and you've been impacted by the Omicron wave of COVID-19, you may be eligible for additional support payments under the 2022 Small Business Support Program.
Eligible businesses will receive a lump sum payment covering the month of February 2022 for businesses that have experienced cash flow issues.
If you're an employing business, the payment will be equivalent to 20% of weekly payroll for work performed in NSW;
minimum payment will be $750 per week
the maximum payment will be $5,000 per week
Weekly payroll should be determined by referring to the calculations underlying the most recent Business Activity Statement (BAS) provided to the Australian Taxation Office (ATO) for a tax period that falls within the 2021–22 financial year. For most businesses, this would be the December 2021 quarter BAS or the January 2022 IAS.
Example:
ABC Pty Ltd meets the eligibility criteria to access the Small Business Support payments. It is designated as a small withholder for PAYG purposes, and reports and pays the withholding amount to the ATO each quarter. It lodged its December 2021 quarter BAS on 28 January 2022, and reported the following details:
What is their weekly payroll amount for Small Business Support Grant purposes?
Service NSW calculates that there are 90 days in this specified period. The weekly payroll amount is calculated to be $1,944.
Daily rate = $25,000 / 90 = $277.78 per day
Weekly payroll = $277.88 * 7 = $1,944.44 per week
Therefore, ABC Pty Ltd would be entitled to a lump-sum payment of $1,555 (being 20% of $1,944 * 4 weeks).
WHAT IS THE ELIGIBILITY CRITERIA?
To be eligible for the 2022 Small Business Support Program, your business or not-for-profit organisations must:
have an active Australian Business Number (ABN).
had been operating in NSW on 1 January 2021.
have had an aggregated annual turnover between $75,000 and $50 million (inclusive) for the year ended 30 June 2021 or 30 June 2020.
have experienced a decline in turnover of 40% or more due to the impacts of COVID-19:
- during January 2022, compared to January 2021 or January 2020.
- from 1 to 14 February 2022, compared to the same fortnight in February
2021 or February 2020.
The reduced turnover is calculated on the GST reporting basis.
for employing businesses, maintain your employee headcount from 30 January 2022 to 28 February 2022.
for non-employing businesses, such as sole traders, show that the business is the primary income source (50% or more of the total income) for the associated person. If you have more than one non-employing business, you can only claim payments for one business.
THINGS TO BE AWARE OF!
Your business must have had a reduction in turnover due to the impact of COVID; if the downturn is due to seasonality variations or business closing for the holiday period, the business would be ineligible.
Businesses earning primarily passive income (in the form of rents, interest, or dividends) remain ineligible for the scheme.
Employees of a business applying for and receiving the Small Business Support Grant can still get the Pandemic Leave Disaster Payments.
New businesses formed after 1 January 2022, or those that have had significant restructure due to M&A, etc. could also be eligible but will need to contact Service NSW to determine eligibility criteria.
WHAT EVIDENCE NEEDS TO BE PROVIDED TO SUPPORT YOUR CLAIM?
To apply for the 2022 Small Business Support Program, you’ll need to declare that you meet the eligibility criteria, and:
submit your most recently lodged Australian income tax return, with tax file numbers redacted, demonstrating an aggregated annual turnover between $75,000 and $50 million (inclusive) for the year ended 30 June 2020 or 30 June 2021, or for registered charities, your ACNC Annual Information Statement.
provide evidence of how the weekly payroll amount was calculated, through:
your most recent BAS or IAS within the 2021–22 financial year,
your 2020-21 payroll tax reconciliation return, or
a copy of your business's payroll report filed using Single Touch Payroll (STP).
provide other supporting documents which may include:
letter of authority, if you are not listed as an associate on the Australian Business Register.
a letter from your accountant, tax agent or BAS agent to verify the business has suffered a 40% decline in turnover.
audited profit and loss statements.
receipts and invoices from purchases.
NSW payroll tax reconciliation returns.
Businesses submitting an Australian income tax return for the year ended 30 June 2020 as proof of aggregated annual turnover may be asked to provide additional proof that they operated in the 12 months prior to 31 January 2022. This may include:
commercial rates notice
lease agreements
utility bills
insurance papers
Full terms and conditions can be found on the Service NSW website.
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HOW TO APPLY FOR THE SCHEME?
Check you meet the eligibility criteria outlined above. A declaration would need to be made during the application process.
Have your documentation and evidence ready for uploading.
Click the following link and select the ‘Apply online’ button. Note: You can save and resume your application, but if you have not submitted it within 7 days, any details you've entered will be deleted.
Log in, or create your MyServiceNSW Account.
Follow the prompts to apply for the 2022 Small Business Support Program.
When you submit your application, you’ll receive a confirmation email with your application reference number.
Service NSW will review your application and contact you if additional information is required to support your application.
If your application is approved, the funds will be transferred to your specified bank account within 5 to 10 business days from the approval date.
If you need assistance in determining eligibility or require assistance in applying for the program, please feel free to contact the ASF team.