Small- to medium-sized companies in NSW may be eligible for a $10,000 rescue grant from the state government to mitigate the economic impact of the COVID-19 pandemic.
The grant will be available to "highly impacted" SMBs, including those operating in the channel, with up to 19 employees and a turnover of more than $75,000.
Support will come from a $750 million Small Business Support Fund, which the NSW state government has put together to keep small businesses afloat during the crisis.
Announced by NSW Premier Gladys Berejiklian on 3 April, eligible businesses must have a NSW Government 2019-20 payroll tax threshold of $900,000, an Australian Business Number as at 1 March 2020, be based in NSW and employ staff as at 1 March 2020.
They must also be “highly impacted” by the COVID-19 social distancing restrictions on issued on 30 March 2020 and use the grant for “unavoidable business costs” such as utilities, overheads, legal costs and financial advice.
“This is about getting cash into small businesses when they are struggling right now in the face of an unprecedented situation,” Berejiklian said.
The move follows the federal government’s $25,000 business grant to subsidise the wages of workers and apprentices at SMBs.
Following this, Scott Morrison this week announced a $1,500 per fortnight package for each employee for six months as part of a $130 million stimulus pledge.
At a state level, the NSW government has offered $5 billion in payroll tax waivers, deferrals and other tax deferrals.
“We have the structures in place after the bushfires and expect to see this money rolling out the door shortly,” Treasurer Dominic Perrottet said.
“This is real, rapid relief for tens of thousands of businesses and it will help ensure many businesses that are not eligible for payroll tax waivers and deferrals can live to trade another day.”
Meanwhile, other state governments have also unveiled their own tax reliefs for for small businesses. In Victoria, SMBs with payroll tax under $3 million are eligible to a full payroll tax refund for the financial year 2019/2020.