Hello clients

Regarding the recent 2021 COVID-19 Support Package potentially:

  1. Your employees will be able to apply and receive the $600
  2. Your business may receive:
  • a one-off payment of $7,500 to $15,000
  • 40% of weekly payroll, $1,500 to $10,000 per week
  1. The turnover comparing period is a minimum 2-week period of 26 June 2021 – 26 July 2021 to the same period in 2019.

At this stage I would assume it is any 2 week period that satisfies the requirements.

You will need VJC to assist assessing turnover eligibility and to provide a letter,

  • Our fee is $95 per entity.
  • For clients that self-assess and send us the Xero ledger reports, $75
  • The above prices are for Xero clients only, you can access the reports from Xero here: Accounting >Account transaction > enter the income account code (you need to do this for all income accounts).
  • Other non-xero clients we will assess upon request.
  • The same letter is likely to be able to be used for the Job Saver also.
  • You are required to assure us that your invoice dates are consistent with normal business practice and have not been manipulated for the purpose of receiving the Grant.

NB: The Service NSW site has crashed, we have not been able to see the application process or understand the requirements 1st hand.

EMPLOYEES

The $600 per week COVID-19 Disaster Payment is for individuals.

BUSINESSES

The government also offers financial support for businesses that meet the eligibility criteria.

The major ones applicable to you are COVID-19 Business Grants and JobSaver.

We recommend you reconcile your accounts up to date and then assess the turnover drop eligibility per entity.

  • The turnover comparing period is a minimum 2-week period of 26 June 2021 – 26 July 2021 to the same period in 2019.
  • At this stage I would assume it is any 2 week period that satisfies the requirements.

COVID-19 Business Grants

It offers a one-off payment of $7500 to $15000 depending on decline in turnover (see below).

The application opens today.

You need to have a turnover drop of more than 30% and maintain employee headcount as at 13 July 202

The turnover comparing period is a minimum 2-week period of 26 June 2021 – 26 July 2021 to the same period in 2019.

At this stage I would assume it is any 2 week period that satisfies the requirements.

  • 30% drop $7,500
  • 50% drop $10,500
  • 70% drop $15,000

See this link for more eligibility criteria and the application: https://www.service.nsw.gov.au/transaction/2021-covid-19-business-grant

JobSaver

It will reimburse 40% of weekly payroll, with a minimum payment of $1,500 per week and a maximum payment of $10,000 per week.

It also offer $1,000 per week to non-employing businesses.

Application opens around 26 July.

Main eligibility criteria is also a turnover drop of more than 30%.

The government has yet to release more eligibility criteria, but we assume the turnover comparing period will be the same of Business Grants

You can register your interest with Service NSW via the link below

https://www.nsw.gov.au/covid-19/2021-covid-19-support-package#jobsaver

Please call us if you have any questions.
The VJC Team

General Advice warning: the information in this article is general in nature, it is not advice specific to your needs. If you want to act upon the information in this article then you should seek advice from a qualified professional. VJC WM accepts no liability to any party for acting from this information unless they have sought advice in a formal engagement with VJC WM for this purpose.