In a significant announcement for small businesses struggling under the weight of the latest lockdown orders, the Federal and NSW government have announced an extension of the COVID-19 Disaster Payment.
More support for small business
A new business support payment will also be available to entities with an annual turnover between $75,000 and $50 million who can demonstrate a 30 per cent decline in turnover.
To receive the payment, eligible entities will be required to maintain their full time, part-time and long-term casual staffing levels as of 13 July 2021.
Eligible entities, which includes not-for-profits, will receive payments of between $1500 and $10,000 per week based on the level of their payroll.
For non-employing businesses, such as sole traders, the payment will be set at $1000 per week.
NSW Treasurer Dominic Perrottet said the package would help thousands of businesses across the State. “We have done this before and we can do it again and this targeted support will help those who need it,” the NSW Treasurer said.
“If you’re a worker, a sole trader, a small or medium business or a big employer – we’ve got your back.
“This package will help families and businesses weather the current storm and ensure we can hit the ground running once this current outbreak is under control.”
Cameron Poolman, CEO of leading small business lender, OnDeck welcomed the additional financial assistance provided by the Commonwealth and State governments and urged brokers to help their clients understand the terms of the support available.
“Brokers can reach out to their SME clients to let them know this support is available and make sure they access the support on offer,” Cameron says.
“In addition, brokers need to remind all their clients that they are still very much open for business despite the social distancing, and they can use video conferencing and even the telephone to keep the lines of communication open.”
COVID disaster payment
The Commonwealth and NSW will also enter a new 50/50 cost-sharing arrangement for a new business support payment to be implemented and administered by NSW.
From week four of the lockdown, the COVID-19 Disaster Payment will increase for those in Commonwealth declared hotspots to $600 if a person has lost 20 or more hours of work a week. If a person has lost between 8 and less than 20 hours of work a week, there is a $375 weekly payment.
The Commonwealth and NSW have also agreed that from 18 July 2021 the COVID-19 Commonwealth Disaster Payment will be available to those outside Commonwealth declared hotspots in NSW that meet the criteria for the payment.
The NSW Government will fund any payments outside a Commonwealth declared hotspot, with the Commonwealth continuing to support payments to recipients in a Commonwealth declared hotspot.
Mental Health support
The Commonwealth and NSW governments will also deliver a $17.35 million mental health support package for NSW including for services through Lifeline, headspace, and Kid’s Helpline.
Get in touch today to find out about OnDeck’s funding options that could support your SME’s recovery planning.
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