Over the weekend Services NSW released eligibility details and opened applications for the JobSaver program. FIA Business Advisory & Finance Partner HLB Mann Judd, provide an update.
JobSaver is the Government’s primary answer to much needed funding for small and medium-sized enterprises during the recently mandated lockdowns.
Payments of $1,000 to $10,000 per week are available to eligible businesses.
The payments are a supplement to the one-off COVID-19 Business Grant, further information on this grant can be found here. Therefore, JobSaver is designed to support business expenditure via regular payments from 18 July 2021.
Businesses eligible for the COVID-19 Business Grant will be eligible for the JobSaver however will still need to complete a separate application.
Click here for eligibility criteria and to apply
JobSaver Payment
Payments will be made fortnightly during the lockdown period, back dated to 18 July 2021.
The amounts available are:
- Payments equal to 40% of weekly payroll* for work performed in NSW:
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- Minimum of $1,500 per week; and
- Maximum of $10,000 per week; or
- $1,000 per week for non-employing businesses
Sole-traders are unable to receive both a Commonwealth COVID-19 Disaster Payment and the JobSaver Payment.
*“Payroll means the Australian Tax Office (ATO) concept of total salary, wages and other payments, as declared at W1 in a Business Activity Statement (BAS) with respect to the payments made for employees that usually worked, or were based, in New South Wales.” - JobSaver Guidelines
JobSaver Eligibility
- Turnover of $75k to $50M for the 30 June 2020 financial year
- Experienced a 30% decline in turnover as a result of the lockdown
- Eligible Australian Business Number (ABN)
- Business was operating in NSW as at 1 June 2021
- Maintain their employee headcount as at 13 July 2021 whilst receiving the payments
- Non-employing businesses must show that the business is the primary income source for the associated person. If you have more than one non-employing business, you can only claim payments for one.
There is also list of ineligible businesses which can be found here and includes entities that primarily earns passive income.
How to Test the 30% Decline in Turnover
The opening of applications for JobSaver brought clarification on some matters which business owners had been waiting for. Primarily this was regarding the decline in turnover test.
It has now been confirmed that eligible decline in turnover is:
- A 30% or greater decline in turnover due to the Public Health Order
- Over a minimum 2 week period
- Within the Greater Sydney lockdown commencing 26 June 2021
- When compared to the same period in 2019.
Still to Come
There is still clarification required regarding the alternative circumstances, for example new businesses, and what information might be needed to support this claim.
HLB Mann Judd will be working with clients and Service NSW to identify, on a case by case basis, what will be required of certain businesses.
If you require assistance regarding alternative circumstances or have any other questions regarding the JobSaver payments, please contact your HLB Adviser, or me directly.
Kim Kelloway
Head of Clients & Markets
T: +61 2 9020 4285
E: kkelloway@hlbnsw.com.au
