New $ 3k grants for small businesses and change to payroll tax threshhold

From 1 July, NSW small businesses will be able to apply for a small business recovery grant of between $500 and $3,000.

The new grant comes as the state government’s previous $10,000 grants from a $750 million funding pool comes to a halt at the end of the financial year after 49,700 businesses accessed more than $490 million.

The new grants will be funded with the remaining of that $750 million support fund.

The small business recovery grant can only be used for expenses associated with safely reopening or up-scaling a business from 1 July and where no other Government support is available.

The eligibility criteria has been made available on Service NSW, and will require an annual turnover of more than $75,000, including the provision of a Business Activity Statement as evidence.

The small business must have experienced at least a 30 per cent decline in turnover from March to July 2020 compared to the equivalent period in 2019, and must be able to report a payroll below the NSW 2019-2020 payroll tax threshold of $900,000.

Service NSW has noted that a combination of documents may be requested to determine eligibility, including prior BAS statements; income tax declaration; profit and loss statements; extractions from an accounting software; and receipts and invoices from purchases.

“These $3,000 grants can be used to relaunch business operations, from covering marketing and advertising expenses to fit-out changes and training staff on how to work safely under the current health conditions – assisting with expenses that will help get them back to business,” said Minister for Finance and Small Business Damien Tudehope.

Payroll tax

The NSW government will also bring forward the raising of the payroll tax threshold to $1 million from 1 July 2020, up from $900,000 and one year earlier than planned.

NSW Treasurer Dominic Perrottet said the measures were designed to help entrepreneurs and mum and dad owners relaunch and revitalise their businesses, as part of the Government’s more than $13.6 billion COVID-19 stimulus support measures.

“From 1 July, eligible small businesses will be able to access up to $3,000 in Recovery Grants, while the tax-free threshold for payroll tax will be increased from $900,000 to $1 million, saving businesses up to $5,450 a year,” he said.

Source: accountantsdaily.com.au