- Business with a 30% decline in turnover will be eligible for a new business support payment
- Payment will be between $1,500 and $10,000 depending on current payroll
- CBA and the Property Council have welcomed support measures announced so far
With Sydney’s lockdown now extended for at least another fortnight, the New South Wales and Federal governments have announced further support for businesses which has been welcomed by the broader business community.
Businesses with an annual turnover between $75,000 and $50 million that can prove a 30% decline in turnover will be eligible for a new business support payment.
The payment will be between $1,500 and $10,000 depending on their payroll and will be on the condition all staff as of 13 July, including casuals, maintain their employment.
Sole traders will be eligible for a $1,000 per week payment.
“This new support represents a new national approach and will apply to other states and territories in the event they face similar circumstances,” said Prime Minister Scott Morrison yesterday when announcing the package.
“As the outbreak has worsened well beyond what we have recently seen in other states and territories, it is in the national interest to enable increased assistance, in partnership with the NSW Government, for workers, business and households, to ensure the lockdown can be maintained to arrest the latest outbreak.”
Scott Morrison, Prime Minister
“Our number one priority remains the health and safety of the people of NSW while also keeping our economy strong as we manage the current COVID-19 challenge,” added NSW Premier, Gladys Berejiklian.
The Federal government estimates the new payment will support up to 500,000 entities employing over 3 million people. The program will be funded 50/50 between both governments.
Business support welcomed
The Commonwealth Bank (CBA) has welcomed the measures introduced, with Group Executive for Business Banking, Michael Vacy-Lyle, said the bank is committed to continuing its role in helping Australian businesses recover from the lockdown.
“CommBank stands ready to support our customers. From tomorrow CBA will make available a new bridging finance facility for customers who need immediate access to the funds from Government payments. “
Michael Vacy-Lyle, Commonwealth Bank
Mr Vacy-Lyle added that CBA has a range of other emergency assistance measures available such as the SME Recovery Loan scheme, repayment deferrals and merchant fee refunds.
“We encourage eligible businesses needing help to register for the Government support, and those needing more urgent assistance to contact us,” he said.
The Property Council of Australia (PCA) has also welcomed the measures with Acting NSW Executive Director, Lauren Conceicao, stating that property owners have provided more than $15 billion of support since the pandemic began last year, in particular to smaller tenants that have been hit hard by restrictions.
“The government support packages announced (yesterday) are very welcome news and commercial property owners are also once again stepping up to play their part, working closely with their smaller hard-hit tenants,” Ms Conceicao said.