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Small businesses in NSW affected by lockdown are getting a lifeline. Here’s what to do next

Posted 5 months ago in Xero news by Joseph Lyons
Posted by Joseph Lyons

This article was last updated on Tuesday, 10 August 2021. As the COVID-19 situation continues to develop, you can find the information you need on government support at Service NSW

In some very welcome news for business owners, the New South Wales and Commonwealth governments have announced a new support package for businesses impacted by the current Greater Sydney lockdown.

Faced with the uncertainty of shifting restrictions, this is an incredibly challenging time for small business owners. And these latest measures intend to ease some of the financial and emotional pressures that can snowball while lockdowns are in place. To help you work out what to do next, and when you’ll start to see payments, we’ve unpacked the latest information below. 

What kind of support is available? 

Small businesses could receive one of three payments depending on their size and operations. 

  1. The first is a one-off grant payment of between $1,500 and $15,000. The amount you could be paid comes down to demonstrating a decline in turnover of at least 30 percent across a minimum fortnightly interval within the Greater Sydney lockdown period (which began 26 June). This must be compared to one of three options: the same period in 2019, the same period in 2020, or the fortnight immediately before 26 June 2021.

For businesses on the NSW border with Victoria impacted by stay-at-home restrictions that began on 27 May, a different time frame could apply. Any fortnight starting from 27 May to the end of lockdown may be used to show a decline in turnover compared to the same minimum period in 2019, 2020 or the fortnight immediately before 27 May 2021.  

According to the NSW Government, the payment amount you could receive is outlined as:

      • $15,000 for a 70 percent or more decline in turnover
      • $10,500 for a 50 to 69 percent decline in turnover
      • $7,500 for a 30 to 49 percent decline in turnover.
  1. Next, is the JobSaver support payment. Eligible small businesses will receive 40 percent of their payroll between $1,500 to $10,000 per week to cover wage expenses.It’s important to remember that these support payments are designed to cover business expenses like rent, utilities, and wages while restrictions are in place. This means that business owners who receive a grant will be required to keep full-time, part-time and long-term casual staff on their books.


  2. And finally, for those without employees – including micro-businesses and sole traders with an annual turnover between $35,000 and $75,000 – you could qualify for a COVID-19 micro business grant of $1,500 per fortnight. Applications for this payment, and JobSaver support are now open. Read more about these support measures here.

Where should I start? 

The first step is to head to the Service NSW website to read the full eligibility criteria. Don’t forget to check with the Australian Business Register to ensure your business and contact details are correct. And do the same with your MyServiceNSW Account (or create one if you haven’t already). 

The next step is to get in touch with your accountant or BAS agent to let them know you intend to claim. To apply for a COVID-19 business grant, you’ll need them to provide a letter outlining your decline in turnover, proving that your business qualifies. And the more notice you can provide, the better prepared they’ll be to help you. 

Together with your advisor, you’ll be able to draw on your 2019 business records using your Xero account to calculate a decline in turnover percentage. It’s also worth noting that school holiday dates (which were different in 2019 and 2021) will likely impact this data, particularly for small businesses affected by seasonal trading periods. 

Once you have your paperwork in order (including your advisor’s letter and proof of identity documents) you’ll be able to begin your application through your MyServiceNSW account. For a step-by-step guide on how to apply, read the Service NSW guidelines

When will the grants be paid? 

From 23 July, the Commonwealth and NSW governments will start making payments to eligible businesses. Your best chance of receiving the support sooner rather than later is to submit your application on 19 July. 

Is there any other help available?

Payroll tax waivers of 25 percent will be available for businesses with wages between $1.2 to $10 million that have experienced a decline in turnover of at least 30 percent. Additionally, COVID-19 business grants will be tax-exempt. 

As well as financial assistance, the NSW and Commonwealth governments are committing over $17 million to a state-wide mental health support package. This will provide a boost to services like Lifeline and Sonder – both of which offer free, round-the-clock counselling. 

For wellbeing support that’s tailored to small business owners and employers, there’s also Beyond Blue’s NewAccess service for free mental health coaching and the Ahead for Business wellbeing plan for managing stress.

Be sure to keep an eye on the NSW government website for more information. In the meantime, head to Xero’s Business continuity hub for more resources and guidance on how to support your business during this challenging period.


July 15, 2021 at 5.09 pm

I have a question regarding the following statement quoted from above:

“It’s also worth noting that school holiday dates (which were different in 2019 and 2021) will likely impact this data, particularly for small businesses affected by seasonal trading periods. ”

Does this mean we can compare our minimum fortnight period for the 2021 dates (between 26 June – 26 July 2021) to the relevant and comparable school holiday period in 2019 (e.g. compare the first 2 weeks of 2021 school holidays vs the first 2 weeks of 2019 school holidays – even though the actual dates will not be identical)?

As you have mentioned, given that school holiday dates in 2019 were different to those of 2021, and therefore for seasonable businesses this makes a big difference in proving the actual and relative decline in turnover. Or are we only able to compare to the exact same date period i.e 26 June – 26 July 2019?

Thanks in advance.

Beeny Atherton in reply to Tim Xero
July 19, 2021 at 8.52 am

Hi Tim, we recommend that you register with Service NSW, as they will have more information on comparable periods, and will keep you updated over the coming days.

July 15, 2021 at 6.21 pm

Under point 1 above in what kind of support you say we are comparing to the same period in 2019 is that correct should that not be 2020?

Beeny Atherton in reply to Kylie-Ann Xero
July 19, 2021 at 8.51 am

Hi there Kylie-Ann, the dates for this year must be compared to 2019, not 2020, due to the impacts of COVID. We recommend that you register your details with Service NSW as they will keep you informed over the coming days.

July 15, 2021 at 10.03 pm

Can anyone tell me how the Govt is helping businesses who were not trading in 2019, how can they compare figures,

Beeny Atherton in reply to Kathy Xero
July 19, 2021 at 2.04 pm

Hi Kathy, please contact Service NSW on 13 77 88. They will be able to provide further assistance. Thanks!

July 16, 2021 at 5.15 pm

Thanks for this Xero. I did not apply for any of the earlier grants but plan to this time around. I am a sole trader in health and have closed this week and plan to stay closed for the next 2. I was on leave over June /July 2019 and so have no data from this period. Any idea on how the government will assess this? Did they request 2020 turnover figures for previous Covid grants?

Beeny Atherton in reply to Cathy Xero
July 19, 2021 at 2.03 pm

Hi Cathy, thanks for getting in touch. You are best contacting the Service NSW by calling 13 77 88 as they will have more information on this to share with you.

Leo Ceniza
July 20, 2021 at 11.20 am

I am a sole trader, a practising accountant. My turnover did decline as compared to the previous years because most of clients are small businesses. As an accountant, I don’t employ outside accountant to do my accounts. Can I sign my own application?

Beeny Atherton in reply to Leo Ceniza Xero
July 20, 2021 at 12.06 pm

Hi Leo, I recommend you getting in touch directly with Service NSW by calling them on 13 77 88 to discuss your specific circumstance because they will be able to best advise you on the necessary steps you’ll need to take. Thanks!

August 5, 2021 at 9.41 pm

I’m still awaiting payment, but once the payments occur how should I record them as these payments are supposed to be tax free. I assume they shouldn’t appear as income?

Beeny Atherton in reply to Damien Xero
August 10, 2021 at 9.09 am

Hi Damien, please refer to the ATO website for more information about government grant and payments during COVID-19.

Sue Mercer
September 3, 2021 at 1.21 pm

How do I record jobsaver payments received in Xero – do I need to enter this in payruns?


Beeny Atherton in reply to Sue Mercer Xero
September 6, 2021 at 1.19 pm

Hi Sue, thanks for your comment. We recommend you getting in touch with the ATO directly because they will be able to best advise you on how to account for JobSaver payments in Payroll.

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