For those businesses who have annual revenue between $75,000 and $50 million for the year ended 30 June 2020 and have been impacted by the recent lockdowns in NSW, applications have now closed the JobSaver Grant.

Updated 30 September 2021

Read on to learn if you are eligible, and how to apply.

JobSaver itself

JobSaver will provide cashflow support to impacted businesses to help them maintain their NSW employee headcount.

JobSaver commences from 18 July 2021 till 30 November 2021.  It covers businesses impacted by any lockdown since 26 June 2021, including regional businesses.

If you need any support for the period pre 18 July 2021 you need to apply for the Covid-19 Business grant.  Click here to learn more about that grant.

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 from 1 August 2021.

Up to 10 October 2021 (when the state expects to achieve 70% double dose vaccination rates), eligible businesses and not-for-profit organisations with employees will receive the equivalent to 40% of Weekly Payroll for work performed in New South Wales provided:

• The minimum payment will be $1,500 per week, and
• The maximum payment will be $100,000 per week.

Eligible businesses and not-for-profit organisations that do not have any employees will receive $1,000 per week.

From 10 October the payment rates will taper as follows:

From 10 September 2021 you will be required to re-confirm your eligibility for JobSaver 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.

Note applications close 18 October 2021.

Eligibility Rules for Job Saver

In order to be eligible for JobSaver 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 $75,000 and $250 million (inclusive) 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 $75,000 or above for the year ended 30 June 2020.  Click here to learn more
• have business costs for which there is no other government support available;
• 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 Covid-19 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;
• maintain your employee headcount for the period for which the business is receiving payments under the JobSaver 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. This means that if this business is a “side hustle” and you earn more from salary and wages for example, you are ineligible for JobSaver.  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.
• Employees who are stood down or on reduced hours can receive the Commonwealth COVID-19 Disaster Payment.
• Employee Headcount includes NSW staff who are permanent (full time or part time), or casual staff that have been employed by the business for more than 12 months.
• You can only claim one grant per ABN.
• Business earning passive income such as rent, interest or dividends are ineligible.

What is Weekly Payroll?

Weekly payroll is generally determined based on Item W1 in the most recent Business Activity Statement (BAS) provided to the Australian Taxation Office (ATO) prior to 26 June 2021 for the 2020-21 financial year. For most businesses this will be your March 2021 BAS.

Note the amount for payroll in Item W1 in your BAS does not include superannuation (including superannuation salary sacrifice).

The calculation is as follows:

A Total salary and wages in Item 1

B Less total salary and wages in A that relate to people not working in NSW

C Less total salary and wages for contractors where tax has been withheld under voluntary agreements

D Equals Total NSW wages

E Divide D Total NSW wages by number of days in the period (if the March 2021 quarterly BAS 90 days) giving daily NSW wages

F Multiply daily NSW wages at E by 7 to get Weekly NSW Wages, or the Weekly Payroll amount for JobSaver

There are some alternate calculations if you did not have wages in your most recent BAS.

What can the funding be used for?

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

• utilities, wages and rent;
• financial, legal or other advice to support business continuity planning;
• 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.
  

What you need to do if you successfully applied for the Covid-19 Business Grant

Businesses that have applied and are eligible for the 2021 COVID-19 business grant (click here for more information on this grant) will generally be automatically eligible for JobSaver but must provide further information on employee headcount and payroll.

Initially Service NSW said if this was the case they would contact you and just ask for the extra information.  This is no longer the case now, so you need to log on and apply for JobSaver after you have applied for the Covid 19 Business Grant.

If you have previously submitted a letter from a qualified accountant, registered tax agent or registered BAS agent to Service NSW to verify decline in turnover for the COVID-19 business grant, you can resubmit this letter as evidence of a decline in turnover up to the percentage previously attested.

Newly impacted businesses will need to separately apply (see below).

You will receive automatic fortnightly payments back dated to 18 July 2021 and payments will continue automatically till the lockdown ends (assuming you comply with the headcount rules for employing businesses).  Businesses with employees must notify Service NSW if they are not maintaining the number of employees they had on 13 July 2021 (but note you will not lose eligibility if an employee resigns).

Other Businesses that did not get the Covid-19 Business Grant

This will apply to those businesses whose experienced the required turnover decline outside of the period 26 June to 17 July 2021.

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.  For example 10 to 23 July 2021; 15 to 28 July; 1  to 14 August 2021 etc.

Once approved, payments will begin from that nominated fortnight (but no earlier than 18 July 2021).  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 JobSaver payment from 1 August 2021.  If your revenue decline started on 15 July, your payments will start effective 18 July.

You only need to apply once and if approved, and payments will continue automatically till the lockdown ends (assuming you comply with the headcount rules for employing businesses).

Businesses with employees must notify Service NSW if they are not maintaining the number of employees they on the day before the fortnight you declare the 30% revenue decline.  For example, if your turnover decline started 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.

The evidence required to support your application for JobSaver is:

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

The highly impacted industries list

How to Apply

Applications are now closed for the JobSaver Grant.

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

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Simply fill in the contact form below or email me at wayne@aRealCFO.com.au or call me on 0412 227 052 to organise one of these obligation free sessions.

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Wayne Wanders, A Real CFO

wayne@aRealCFO.com.au