I’m here with insights for Australian businesses on 19th July 2021.
I know a lot of Tenfold clients and business owners in NSW and VIC are keen to understand what financial support will be coming down the line. As promised, our business coaches have reviewed the support and we provide an overview of the state and federal financial support available for businesses in NSW and VIC. Our coaches advise that the VIC support is more of the same, the NSW support is substantial and the early read on the federal support is that it could be similar to JobKeeper.
VIC financial support – once off payment
Since the May/June 21 lockdown, the Victorian government has been offering limited financial support to locked down businesses within a small number of eligible ANZSIC codes. We have previously written about the Business Costs Assistance program here: https://tenfoldcoaching.com.au/business-insights-4th-june-2021-financial-support-for-victorians/
To compensate for this latest lockdown, hardest hit businesses in hospitality will receive an additional top up payment of $3,000 (per ABN) under the Licensed Hospitality Venue Fund, while businesses in a small number of other eligible sectors will receive an additional top up payment of $2,000. (We may see these amounts topped up further with the lockdown extension – we’ll be keeping an eye out for news.)
If your business received a payment under the Business Costs Assistance Program (BCAP) Round 2 in the May/June 2021 lockdown, we can advise that you will automatically get this top up payment. You don’t need to do anything.
We have been advised that some applications for the funding in the May/June round are still being processed. Those businesses in the backlog that do get approved will also automatically get the top up payment. Please let your Tenfold business coach know if your applications gets declined, as we’re aware of the various avenues for reassessment.
NSW financial support – once off payment
The NSW government financial support is a very different scheme and it’s based on two different levels: businesses that have been being highly impacted, and others businesses non highly impacted, with different application criteria for each of them.
The eligibility is based on a declining turnover test, like we saw with JobKeeper.
There are 3 tiers of payments based on the amount of decline in turnover, over a two-week period during the lockdown:
- $7,500 for a decline of 30% or more
- 10,500 for a decline of 50% or more
- $15,000 for a decline of 70% or more
To be eligible, NSW businesses will need to maintain their staffing head count. That said, our business coaches have read the fine print and we believe that businesses can reducing staffing hours and stand people down, as long as they retain the employees on the company payroll. If you make employees redundant, you won’t be eligible to receive the funding.
There are other eligibility criteria relating to total turnover, operating period and location. Tenfold business coaches will provide advice to our NSW business clients with their eligibility for this grant on as needs basis.
The key thing I want Tenfold clients and NSW business owners to know is that these state government support packages will be open for while. So you don’t need to rush your application. You’ve got until September to apply for the New South Wales funding. So unless you are really tied up with cash flow, you have plenty of time to get your application in order – we will get more information as we go.
NSW and federal government funding, Jobsaver – ongoing payments
The federal government and the NSW state government are collaborating on another payment for employers, which is Jobsaver. The finer details haven’t been finalised yet but from the information currently available, this one also sounds somewhat similar to JobKeeper.
Information to date is that employing businesses that have had their revenue decline by 30% or more will be able to receive up to 40% of their weekly payroll, with a maximum payment of $10,000 per week.
We believe that this is being worked on at the moment between the federal government, treasury the ATO and NSW government as to how they are actually going to roll it out. With applications open from July 26 and payments expected to flow from July 30, we expect further details soon, so stay tuned.
If Victoria’s lockdown gets extended like it has in NSW, the urgency for this is going to increase. The federal government knows the kind of pressure this puts on employers, especially with JobKeeper having ended months ago. The federal government don’t want people made redundant and images of people in unemployment queues on the nightly news, so expect more support with the two biggest state economies under lockdown.
Federal government financial support for workers
Employees who have had their working hours reduced due to lockdowns are eligible for COVID-19 Disaster Support payments from the federal government. Victorians who are in areas outside a Commonwealth declared hotspot are also eligible to receive the COVID-19 Disaster Support payments.
Depending on how many hours of work they lost and the number of lockdown periods they have been subjected to, individuals are eligible to receive between $325 – $600 per lockdown period.
Our read of it is that businesses will be able to receive the governments payments, and their employees who have had hours reduced will also be able to receive payment.
The Tenfold coaches and I are discussing these matters regularly. If there are any grey areas about whether your business is eligible to receive funding, your coach can help you interpret the rules for the respective government criteria. We have assisted many Tenfold clients to receive government financial support above what they thought would be possible.
Ashley Thomson B.Eng. (Hons), Grad. Dip. Mgmt, MEI
Tenfold Business Coaching