Applications for the 2021 COVID-19 JobSaver Payment Now Open

The second NSW COVID-19 financial support package is now active and applications can be made via your MyServiceNSW account and using the links below.

Grants are open from 26 July 2021 to 18 October 2021

In this newsletter we will provide key information on the eligibility and information requirements for the payment. Additional information can be found on the Service NSW webpage by following the below links:

• Information on the payment, eligibility requirements and the application process can be found here: https://www.service.nsw.gov.au/transaction/jobsaver-payment
• The detailed grant guidelines can be found here: https://www.service.nsw.gov.au/jobsaver-payment-guidelines

Eligibility Requirements:

To be eligible for the grant, you must:

• have an Australian Business Number (ABN) and were operating in New South Wales on 1 June 2021;
• had a national aggregated annual turnover of between $75,000 and $50 million (inclusive) for the year ended 30 June 2020;
• experienced a decline in turnover of 30% or more due to the Public Health Order over a minimum 2-week period within the Greater Sydney lockdown (commenced 26 June and due to end 30 July 2021), compared to the same period in 2019;
• for employing businesses, they maintain their employee headcount on 13 July 2021 while they continue to receive JobSaver payments (businesses that do not maintain the declared headcount must notify Service NSW); and
• for non-employing businesses, the business receiving payments must be the primary income source for the associated person. Individuals with more than one non-employing business may only claim payments for one business.

Eligible businesses and not-for-profit organisations will receive fortnightly payments backdated to cover costs incurred from week-4 of the Greater Sydney lockdown (from 18 July 2021 onwards). The 2021 COVID-19 Business Grant covers the first three weeks of the Greater Sydney lockdown. 

Eligible businesses and not-for-profit organisations with employees will receive the equivalent to 40% of Weekly Payroll for work performed in New South Wales provided: 

• The minimum payment will be $1,500 per week, and 
• The maximum payment will be $10,000 per week. 

Eligible businesses and not-for-profit organisations that do not have any employees will receive $1,000 per week. 

Payments will be made in arrears with the first payment backdated to 18 July.

NB: You can receive the JobSaver payment if you have applied for the NSW COVID-19 Business Grant

Application Process:

The application for the grant is made via the MyServiceNSW account (click here to apply) and as such each business will need to complete the application. Please note that as tax agents we do not have access to this system and cannot complete the applications on your behalf. You can start the application by selecting “Apply Online” from the bottom of the following page: https://www.service.nsw.gov.au/transaction/jobsaver-payment

Grants are open from 26 July 2021 to 18 October 2021

Businesses that have applied and are eligible for the 2021 COVID-19 business grant will generally be automatically eligible for JobSaver but must provide further information on employee headcount and payroll.

Some businesses that are not eligible for the 2021 COVID-19 business grant are still eligible provided they meet the criteria outlined above.

In order to complete the application you will need the following details:

• a MyServiceNSW Account (click here to apply if needed)
• your proof of identity
• your valid ABN/ACN number
• your business banking details for payment
• Australian income tax return or Notice of Assessment
• qualified accountant, registered tax agent or registered BAS agent details.
• A copy of the most recent BAS, lodged prior to 26 June 2021, that included a wages figure at W1, this is to confirm the weekly payroll of the business. See additional information below regarding the calculation of wages for the payment

Evidence Required:

In order to substantiate that your business has met the required drop in turnover Crispin & Jeffery will need to provide you with a letter confirming the following:

• The lowest fortnightly turnover over a minimum 2-week period within the Greater Sydney lockdown period (commenced 26 June) compared to the same period in 2019.
• The business turnover for the same period in June or July 2019
• The drop in turnover experienced in the selected period

If you intend to apply, can you please provide us with the above information, including substantiation where appropriate, and we will provide the required letter as soon as possible.

NB: If you have already submitted a letter in your application for the COVID-19 Business Grant then you can simply resubmit this letter.

You will also need to submit a copy of your business tax return from the year ended 30 June 2020 to confirm that your business income is greater than $75,000.

Additional Information:

• Calculation of weekly wages:
  • Businesses that only operate within New South Wales should first identify the amount reported under item W1 in the relevant BAS and deduct any amounts withheld on behalf of contractors. That amount should be divided by the number of days in the BAS period and multiplied by 7. This will give the Weekly Payroll amount. 
  • Businesses that also operate in other states or territories should use the same approach as reporting to the ATO on W1 to calculate the amount of wages, salaries and other amounts paid to employees who usually worked, or were based, in New South Wales during the relevant BAS period. Amounts voluntarily withheld on behalf of contractors in New South Wales should then be deducted. That amount should be divided by the number of days in the BAS period and multiplied by 7. This will give the Weekly Payroll amount. 
• For non-employing businesses e.g.) sole traders, the business receiving payments must be the primary income source for the associated person. Non-employing businesses are not eligible to apply if persons associated with the business, and who derive income from it, have applied for, or are receiving, the Commonwealth COVID-19 Disaster Payment.
• There are several circumstances where a business may not meet the eligibility criteria and supporting evidence requirements, but still may be eligible for JobSaver. These circumstances include:
  • 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.
  • Businesses in these circumstances should contact Service NSW to determine if an alternate comparison period, or alternative supporting evidence, can be applied.
• Where a business does not submit a BAS to the Australian Tax Office, the business should contact Service NSW to discuss further.
• 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.