NSW Micro Business Grant

For those businesses with turnover between $30,000 and less than $75,000, applications are now open for the NSW Micro Business Grant.

Note applications for the Micro Business Grant have now closed

Read on to learn if you are eligible.

Also there are separate grants if your turnover is above $75,000. For more information of the Covid -19 Business Grant click here.  For more information on the JobSaver scheme click here;

The Micro Business Grant itself

The 2021 Micro Business Grant is designed to provide cashflow support to micro–businesses with an aggregated annual turnover more than $30,000 and less than $75,000.  Up until NSW reaches its 80% double dose vaccination target (expected late October 2021) it is a fortnightly payment of $1,500 in arrears to cover business expenses for the period the business has suffered a revenue / turnover decline during the current NSW lockdowns.  For the period from when the 80% double dose target is reached, till 30 November, the payment will be $750 per fortnight.  There will be no support beyond 30 November 2021 under this program.

You will need to nominate the 2-week period in which you first experienced the 30% decline in turnover on or after 26 June 2021. Once approved, payments will begin from that nominated fortnight.  For example, you are in a regional NSW town and your 30% revenue decline started in the fortnight 1 to 14 August 2021.  You will be eligible for the fortnightly payment of $1,500 from 1 August 2021.

From 13 September 2021 you will be required to re-confirm your eligibility for the Micro Business Grant each fortnight to continue to receive payments.  This will be both to confirm you continue to experience a decline in revenue of 30% or more and that you are complying with the headcount rules for employing businesses.  To learn m ore about re-qualification click here.

Businesses with employees must notify Service NSW if they are not maintaining the number of employees they had on 13 July 2021, or the day before the fortnight you declare the 30% revenue decline.  In the above example of the turnover decline starting 1 August 2021, it would be based on your headcount as at 31 July 2021.  Note you will not lose eligibility if an employee resigns.

Applications close 18 October 2021.

Eligibility Rules that apply to all businesses

In order to be eligible for the Micro Business Grant your business or not for profit organisation must:

• have an Australian Business Number (ABN) and be operating in NSW as at 1 June 2021;
• had an aggregated annual revenue between $30,000 and $75,000 for the year ended 30 June 2020. Note: there are some alternative circumstances allowed by Service NSW that may mean you are eligible for this grant even if you don’t have revenue of $30,000 or above for the year ended 30 June 2020.  Click here to learn more;
• has fewer than 20 FTE employees as at 1 June 2021;
• have experienced a decline in turnover of 30% or more due to the Public Health Orders over a minimum 2-week period during the lockdowns from 26 June 2021, compared to:
  • the same period in 2019, or
  • the same period in 2020, or
  • the 2-week period immediately before the Greater Sydney lockdown commenced (12 June to 25 June 2021)
• If your business revenue is down year on year due to factors other than the recent Public Health Orders, you may not be eligible for this Micro Business Grant;  Note: there are some alternative circumstances allowed by Service NSW that may mean you are eligible for this grant even if you don’t have revenue in June / July 2019, or your revenue in June / July 2019 is not representative of your business.  Click here to learn more;
• have business costs for which there is no other government support available;
• have not applied for either the COVID-19 Business Grant, or the JobSaver scheme. For more information of the Covid -19 Business Grant click here.  For more information on the JobSaver scheme click here;
• for employing businesses maintain your employee headcount as at 13 July 2021 for the period for which the business is receiving payments under this Grant. Thankfully employers will remain eligible if employees voluntarily resign.
• 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

Note:

• 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.
• You can only claim one grant per ABN.
• Multiple businesses under a single ABN are only eligible for one grant.
• Business earning passive income such as rent, interest or dividends are ineligible.

What can the funding be used for?

The Micro Business Grant can be used to offset business costs incurred from 1 June 2021 to 18 July 2021. These costs may include, but are not limited to, the following expenses:

• utilities, wages and rent;
• financial, legal or other advice;
• marketing and communications activities to develop the business;
• the cost of perishable goods that can no longer be used; or
• other activities to support the operation of the business.

Evidence Required to support your application for the Micro Business Grant

Businesses applying for the Grant are required to:

• submit evidence they experienced a decline in turnover of 30% or more due to the Public Health Order over a minimum 2-week period during the lockdowns from 26 June 2021 compared to one of the period options noted above . This does not need to be an accountant’s letter.  It can be by way of a business bank account statement (separate from any personal accounts).
• submit evidence they had an aggregated annual turnover of more than $30,000 and less than $75,000 for the year ended 30 June 2020 (or alternate period). This can be in a form of an accountant’s letter, copies of business activity statement (BAS), business bank account statement or a income tax return (or Notice of Assessment).
• if they do not have employees, declare the business is the primary income source for the owner of the business,
• if they do have employees, declare they will maintain their employee headcount on 13 July 2021 for the period for which the business is receiving grant payments and notify Service NSW if employee headcount declines over the period of the payment due to any actions of the business, and
• lodge other supporting documents, as required, to demonstrate that they meet the eligibility criteria.

Note. Service NSW reserves the right to audit any of the evidence supporting the above declarations.

More information

Note applications for the NSW Micro Business Grant have now closed.  Click here to get more information from the Service NSW website.

If you want a confidential discussion on your business situation, or help with this grant contact me below

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