Up to $7B commitment to COVID-19 lockdown support package

NSW Premier Gladys Berejiklian, Treasurer Dominic Perrottet and Prime Minister Scott Morrison at the joint media conference announcing support packages.

The NSW Government announced a comprehensive economic support package worth billions of dollars on July 13 aimed at helping businesses and people right across the state fight through the current COVID-19 lockdown.

The commitment will now be up to $5.1B, including more than $1B from the Commonwealth as part of a business and employee support program.

The business grants program announced two weeks ago has been expanded, with grants between $7,500 and $15,000 available to eligible businesses with annual wages up to $10M.

A new grant program has also been introduced for smaller micro businesses with turnover between $30,000 and $75,000.

Thousands of employees will also be protected with NSW committing half of a new $2.1B business and employee support program to be delivered together with the Commonwealth.

Businesses will benefit from payroll tax waivers of 25 percent for businesses with Australian wages of between $1.2M and $10M that have experienced a 30 percent decline in turnover.

Residential tenants will have greater protection with a targeted eviction moratorium.

Residential landlords who decrease rent for impacted tenants can apply for a grant of up to $1,500 or land tax reductions depending on their circumstances.

Commercial and retail landlords will need to attempt mediation before recovering a security bond, or locking out or evicting a tenant impacted by the Public Health Order.

Commercial, retail and residential landlords liable for land tax will be eligible for a land tax concession where they reduce the rent of their tenant.

Premier, Gladys Berejiklian, said the comprehensive package had three key aims: protecting business; saving and keeping jobs through the lockdown; and, ensuring that people had support during an uncertain and difficult time.

“We have always said that we will do whatever it takes to protect the people of NSW and keep our economy strong, and that is exactly what we are doing,” Berejiklian said.

Treasurer, Dominic Perrottet, said the Government was offering support in as many areas as possible, with payroll tax cuts for eligible businesses, up to $75M in support for the performing arts sector and $26M for the accommodation industry.

“The value of our business grants package is now up to $2.1B with a 50 percent increase, there is also a new grant for those smaller businesses turning over between $30,000 and $75,000, and payroll tax waivers for eligible businesses with a payroll up to $10M that suffer a 30 percent reduction in turnover,” Perrottet said.

Key components of the 2021 COVID-19 package include:

An extension to the previously announced business grants program. This means eligible businesses with Australian wages below $10M can claim grants between $7,500 and $15,000 to cover the first three-weeks of restrictions, and takes the potential size of the program to $2.1B

  • Up to $2B committed to the scheme to provide cashflow support to businesses to help them retain staff, to be delivered together with the Commonwealth.
  • Payroll tax waivers of 25 percent for businesses with Australian wages of between $1.2M and $10M that have experienced a 30 percent decline in turnover, as well as payroll tax deferrals and interest free repayment plans
  • A new grants program for micro businesses with a turnover of between $30,000 and $75,000 which experience a decline in turnover of 30 percent. The businesses will be eligible for a $1,500 payment per fortnight of restrictions.
  • A capped grant of up to $1,500 for residential landlords who are not liable to pay land tax who reduce rent for tenants estimated at $210M
  • Land tax relief equal to the value of rent reductions provided by commercial, retail and residential landlords to financially distressed tenants, up to 100 per cent of the 2021 land tax year liability.
  • Introduction of legislative amendments to ensure a short-term eviction moratorium for rental arrears where a residential tenant suffers loss of income of 25 percent due to COVID-19 and meets a range of criteria.
  • No recovery of security bonds, or lockouts or evictions of impacted retail and commercial tenants prior to mediation
  • Deferral of gaming tax assessments for clubs until December 21, 2021 and hotels until January 21, 2021
  • A $75M support package for the performing arts sector to be administered by Create NSW
  • A support package for the accommodation sector worth $26M
  • $12M in additional funding for temporary accommodation for those at risk of or experiencing homelessness
  • $5.1M in NSW funding to support mental health.

Verified informationsSource: Media release, July 13,2021,Premier Gladys Berejiklian & Treasurer Dominic Perrottet