COVID-19 – Lockdown Support

With the greater Sydney area in lockdown until at least 9 July, there are many businesses and individuals unable to continue to work as usual. Fortunately for many there is financial support available, however there is strict eligibility criteria to access it.

The current COVID-19 specific financial support available includes:

• Grants of between $5,000 and $10,000 for small businesses experiencing a significant decline in turnover as a result of the lockdown
• COVID-19 disaster repayments for those who cannot work due to the lockdown
• Pandemic Disaster Leave Payments for those who are directed to self-isolate or quarantine

Support for Businesses

The NSW Government has announced today targeted relief for small businesses that are severely impacted by the lockdown with grants of between $5,000 and $10,000. These payments will be available from 19 July 2021.

In addition to the announcement of these grants, the NSW Government has announced:

• Payroll tax deferrals for all employers
• An extension of the Dine and Discover program to the end of August
• The option to defer gaming machine taxes for hotels and clubs

As the announcements were only made this morning, many of the finer details are yet to be released.

Small Business COVID-19 Support Grant

The details announced today specify that the grant is available for small businesses that meet the following criteria

• Annual turnover between $75,000 and $1,200,000; and
• Has less than 20 full-time equivalent employees; and
• Has an ABN; and
• Able to demonstrate they are physically located and primarily operating in NSW, and
• Experience a decline in turnover.

The amount of the grant a business is eligible for will be determined by the impact of the lockdown on your turnover and whilst we do not know the period this will be assessed over, it has been announced that:

• Businesses experiencing a decline in turnover of 70% will receive the full $10,000
• Businesses experiencing a decline in turnover of 50% will receive $7,000
• Businesses experiencing a decline in turnover of 30% will receive $5,000

Individuals

There are two main forms of financial relief available to individuals:

• COVID-19 Disaster payments
• Pandemic Disaster Leave Payment

COVID-19 Disaster Payments

This is a one-off payment to assist individuals where a lockdown lasts for more than 7 days. The eligibility criteria is quite strict.

To be eligible you must meet the following criteria:

1. You are an Australian resident or hold an eligible working VISA, and
2. You are 17 years or older, and
3. You live or work in a Commonwealth-declared COVID-19 hotspot, and
4. You cannot attend work or have lost income on or after day 8 of the lockdown, and
5. You do not have any appropriate paid leave entitlements, and
6. You are not in receipt of an income support payment, the Pandemic Leave Disaster Payment, a state or territory pandemic payment, or state small business payment for the same period, and
7. You have liquid assets of less than $10,000

The amount you will receive will depend on your situation.

As noted above, the payment is only available for lockdowns that last more than 7 days. In addition, the payment only applies from the 8th day of lockdown. In other words, it is not available for the first week of lockdown, only for the second and subsequent weeks (if any) of a lockdown.

If you are eligible to receive this payment, the payment is taxable and will need to be included in your income tax return.

For more information, click here.

Pandemic Leave Disaster Payment

The Pandemic Leave Disaster Payment is support available for individuals who cannot earn an income because they must self-isolate, quarantine or are caring for someone with COVID-19.

The payment is $1,500 for each 14-day period you are advised to self-isolate or quarantine.

You must have been directed to self-isolate or quarantine by NSW Health for one of the following reasons:

• you have coronavirus (COVID-19)
• you’ve been in close contact with a person who has COVID-19
• you care for a child, 16 years or under, who has COVID-19
• you care for a child, 16 years or under, who’s been in close contact with a person who has COVID-19.

You may also be eligible if you’re caring for someone who has COVID-19.

In addition to the above criteria, you must be:

1. You are an Australian resident or hold an eligible working VISA, and
2. You are 17 years or older, and
3. You are unable to go to work and earn an income, and
4. You have no appropriate leave entitlements, including pandemic sick leave, personal leave or leave to care for another person, and
5. You did not receive any income, earnings or salary from paid work, income support payments, ABSTUDY Living Allowance, Paid Parental Leave or Dad and Partner Pay.

If you are eligible to receive this payment, the payment is taxable and will need to be included in your income tax return.

For more information, click here.

Both payments are accessible through Services Australia and applications can be made through your MyGov account if you have created and linked a Centrelink account.

Other Forms of Financial Relief

The NSW Government COVID-19 website is a good source of information for information about COVID-19 for residents in NSW including the current lockdown as well as links to financial support and assistance. Click here to access this page.