Applications for the COVID lockdown grants for small to medium companies in NSW are actually open, with a one off, tax free grant relying on three tiers of turnover decline over a two-week interval from 26 June 2021 to 26 July 2021, in comparison with the identical interval in 2019, the primary stage of the roll-out.
All companies, together with not-for-profits, in NSW could also be eligible if they’ve a complete annual wage of $10 million or much less on 1 July 2020 and aggregated annual turnover between $75,000 and $50 million for the 12 months ended 30 June 2020.
Michael Croker, Tax Leader at Chartered Accountants Australia and New Zealand (CA ANZ.) is urging accountants to digest the data shortly and work quick with their eligible purchasers to assemble the data required to submit their purposes.
“While the NSW Government has embraced some of the technical jargon used when JobKeeper was rolled out in 2020, the main difference is that NSW agencies, and not the ATO, will regulate the support program,” Croker stated.
“This can be state-based, not nationwide so cross-border companies might must show they’re bodily positioned and working in NSW.
“The NSW grant is act of grace payment under the State law, meaning there is no proscriptive legislation like there was with JobKeeper,” Croker added. “Accountants are also able to attest that their clients satisfy eligibility criteria, and a template has now been published for this purpose.”
Of most curiosity to accountants is the NSW ‘JobSaver’ initiative.
“JobSaver involves tax free payments between $1000 and $10,000 a week that are paid fortnightly for the period from 18 July 2021 until the lockdown ends,” Croker defined. “Like the one-off grant, there is an employee retention condition and applications are expected to open on 26 July.”
Croker highlighted the truth that that the NSW COVID help coincides with a very busy time for accountants, as they assist their purchasers put together 12 months finish accounts and 2021 tax returns.
“JobSaver ends when the NSW lockdown ends but many NSW business will need on-going help,” Croker stated. “Business recovery takes time and accountants will be helping clients negotiate with banks, landlords, suppliers and ATO debt collectors for months to come.”