Prime Minister Scott Morrison has announced a number of COVID-19 support initiatives for businesses in NSW and Victoria as they grapple from the impact of the lockdowns.  

These initiatives include an expanded COVID-19 Business Support Payment for NSW, and a new support package for Victoria, aiming to give businesses and workers the extra support that they require.

Expanded COVID-19 Business Support Payment for NSW

In NSW, with Greater Sydney set to remain in lockdown until at least 28 August, the Federal Government and NSW State Government have agreed to expand the COVID-19 Business Support Payment.

JobSaver payments will now be available to businesses with an annual turnover of between $75,000 and $250 million, up from $50 million, which have experienced a revenue decline of 30 per cent or more.

The maximum weekly payment has also been substantially increased, with employing businesses that maintain their employee headcount now able receive between $1,500 and $100,000 per week, up from $10,000.

The payment will continue to be calculated based on 40 per cent of payroll for businesses that have suffered a 30 per cent or more decline in turnover.

Under the expanded payment, eligible entities also include not-for-profits.

However, for non-employing businesses, such as sole traders, the payment will remain set at $1,000 per week.

Prime Minister Scott Morrison said the expanded payment will now cover more than 400,000 businesses employing 3.3 million workers in NSW, subject to eligibility.

He also said the payment will provide “more substantial support for businesses” to cover unavoidable costs such as rent, insurance and maintenance as well as employee costs as a result of the extended lockdown.

The expanded support will continue to be conditional on businesses maintaining their employee headcount as at 13 July (covering permanent and long-term casual employees) by not taking active steps to terminate their employment.

Applications for the support opened on 18 July with more than 14,000 applications made and almost $28 million approved for payment so far. Payments are expected to be transferred to bank accounts from 31 July.
 
Businesses that have already submitted an application will see their payment automatically adjusted with the expanded program.

Workers who have lost hours will also continue to be supported by the COVID-19 disaster payment.

“Our support has never been set and forget and even before Service NSW had started to deliver the support on Monday that we announced earlier this month, my government had been looking at what else businesses would require to strongly emerge on the other side of this lockdown,” Morrison said.

“Whether you’re a worker who has lost their income or a business that’s suffering, even more help is on the way.”

Businesses applying for the support package can do so on the Service NSW website.

Victorian Business Support Package

Morrison also announced a new jointly funded package with the Victorian Government to provide Victorian small and medium businesses with extra support of $400 million.

The package includes a new $85 million Small Business COVID Hardship Fund and $156 million Business Continuity Fund, as well as delivering support for commercial tenants and landlords.

Morrison said Victorian businesses had borne the brunt of the heavy cost of lockdowns and the support will assist in its recovery.

“Last year, Victoria and our nation faced heavy blows from COVID, but with the right supports in place our economy and businesses came back strongly and a million people returned to work. We will continue to do what is necessary to support Victorian businesses as we face the evolving challenges of COVID-19,” he said.

The support includes, amongst other funds:

• The Business Continuity Fund, which is a $156 million fund that will be established to deliver $5,000 grants to up to around 30,000 businesses that remain impacted by capacity limits placed on businesses by necessary public health restrictions. Businesses located in the CBD that continue to be impacted, due to restrictions on the number of staff allowed in office buildings, will be eligible to receive an additional $2,000. All recipients must have received or been eligible for the previous Business Cost Assistance Program.

• A new Small Business COVID Hardship Fund, which will be established to support small businesses who have not been eligible under existing business support funds. Small businesses with a payroll of up to $10 million who have experienced a 70 per cent or greater reduction in revenue will be eligible for grants of up to $5,000.

• The Commercial Tenancy Relief Scheme and Landlord Hardship Fund, which will deliver $80 million to provide support to landlords that provide rent relief to their tenants. The Commercial Tenancies Relief Scheme will be reinstated to provide rent relief to small to medium commercial tenants and their landlords with more details on the roll out to be provided by the Victorian Government soon.

Ai Group reflects…

Helen Waldron, NSW head of the peak employer association Ai Group said the state and federal financial support is welcome, but other measures should also be considered.

“The state and federal financial support offered so far has helped many businesses survive the restrictions, maintain operations and keep employees on their books. The changes announced to increase the level of support and to extend JobSaver to larger businesses who experience a significant fall in turnover is a clear improvement and will make JobSaver more effective and help many more of these businesses maintain their workforces,” she said.  

“[But] other measures should also be considered. The lockdown extension certainly reinforces calls for the Federal Government to reinstate the temporary industrial relations flexibilities that were associated with JobKeeper. This flexibility is necessary to help employers and employees survive this and future lockdowns.”

Waldron added that as many smaller retail businesses are finding it difficult to pay their rent, further relief may be warranted.

“The impact of the situation in NSW is being felt well beyond our borders and close consideration needs to be given to extending support to businesses and employees in other states that are adversely affected by the NSW lockdowns,” Waldron said.

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