COVID-19 – NSW Government Stimulus Package Summary

By May 25, 2020Uncategorized

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COVID-19

NSW Government Stimulus Package Summary

STIMULUS 4

Monday 13 April 2020:

1. 25% Land Tax Concession

Effective: 31 December 2019

– Eligible landlords will be able to apply for a land tax concession of up to 25 per cent of their 2020 (calendar year) land tax liability on relevant properties.

– Commercial landlords will be offered the land tax concession if they pass the savings on to financially distressed tenants through a rent reduction, where those tenants turnover up to $50 million and suffer a downturn in income of at least 30%.

– Rent relief must be passed on to tenants at any time between 1 April 2020 an 30 September 2020 without the requirement to be paid back at a later date.

– A further land tax deferral for any outstanding amounts for a three-month period will also be offered to landlords who claim the land tax concession.

– Applications are available through Service NSW

 


STIMULUS 3

Friday 3 April 2020:

1. $10,000 Small Business Grant

Effective: 17 April 2020 until 1 June 2020

– $10,000 grants to eligible NSW small businesses that have been subject to closure or are highly impacted by NSW Government health directions in relation to COVID-19, as follows:

⋅ Retail trade

⋅ Accommodation and food service

⋅ Rental, hiring and real estate services

⋅ Administrative and support services

⋅ Arts and recreation services

⋅ Other businesses with at least a 75% reduction in revenue for a minimum 2 week period since 30 March 2020 and supported by a letter from your accountant

– Eligibility:

⋅ a business highly impacted by the Public Health (COVID-19 Restrictions on Gathering and Movement) Order 2020 issued on 30 March 2020 (refer some industries above);

⋅ turnover of more than $75,000;

⋅ employ between 1-19 employees

⋅ annual payroll less than $900,000;

⋅ have an Australian Business Number (ABN) as at 1 March 2020,

⋅ based in NSW and employ staff as at 1 March 2020;

⋅ use the funding for unavoidable business costs such as utilities, overheads, legal costs and financial advice;

⋅ provide appropriate documentation upon application.

– Applications will be available through Service NSW by 17th April 2020 and will remain open until 1 June 2020.

 


STIMULUS 2

Friday 27th March 2020:

1. NSW Payroll Tax

Effective: March 2020 or until end of financial year

NSW Payroll Tax concessions have been extended for six (6) months until October 2020

– Businesses annual payroll tax liability reduced by 25% if all Australian wages paid or payable by the employer are $10 million or less (annual reconciliation due 28 July 2020)

– Monthly lodgers and payers will not have to pay for the months of March, April or May 2020 (with potential to defer for an additional three months)

– Large businesses >$10 million in Austalian wages will have the option to defer payments for 6 months.

2. Other small business support

– Deferral of gaming tax for clubs, pubs and hotels until 1 September 2020, and lotteries tax for six (6) months to 30 September 2020, conditional on these funds being used to retain staff.

– Deferral of the parking space levy for six (6) months to 30 September 2020

– Deferral of rents for six (6) months for commercial tenants with less than 20 employees in all Government-owned properties

– Land Tax instalment plans

Emergency cleaning contracts to small and medium sized businesses to supplement current Government Contracts

– Currently operational taxis will receive a $2,900 subsidy per vehicle with applications made available from June 2020

– Electricity and Gas subsidies for Small Business’ that are temporarily closed

Creative Kids digital small business grant of $5,000 to assist with adapting kids to the online learning programs environment.

– There are a wide range of other measures announced in other states and we will contact our clients individually on these measures where applicable

 


STIMULUS 1

Tuesday 17th March 2020:

1. NSW Payroll Tax

Effective: 1 July 2020

– NSW Payroll Tax threshold will raise to $1m

2. Other small business support

– Waiver of a range of fees and charges for small business including bars, cafes, restaurants and tradies. More information to come. We will continue to update this information as it becomes available

– There are a wide range of other measures announced in other states and we will contact our clients individually on these measures where applicable

 


The material and contents provided are informative in nature only.  It is not intended to be advice and you should not act specifically on the basis of this information alone.  If expert assistance is required, professional accounting advice should be obtained. We are here to help, contact us today: admin@theCAgroup.com.au