NOTE: Changes to the grant have occurred since this article was written
Every great business was once a micro business and collectively micro-businesses comprise the majority of small business. Failing to provide support to this industry would have devastating impacts on the future of our economy. The introduction of the micro business grant is welcomed and signifies the importance of supporting these smaller businesses who drive our economic engine.
The micro-business grant is a payment that will be made by Service NSW to eligible micro-businesses. A micro-business for the context of this grant is defined as a business turning over $30,000 – $75,000. The micro-business grant will provide a payment of $1,500 per fortnight to eligible businesses to cover business expenses for the duration of the lockdown, backdated to 26 June 2021.
Applications open 26 July 2021 and close 18 October 2021 and the turnover period being tested is 26/06 – 30/07. Sadly, if you don’t fit the standard rules there is still limited information about alternate comparison periods. The guidance is still to contact ServiceNSW who can provide an alternative test period.
Once approved the payment will automatically be paid fortnightly. Eligible businesses are those that:
- Have an Australian Business Number (ABN) as at 1 June 2021 registered in, or can demonstrate they are primarily operating in, New South Wales;
- Had a national aggregated annual turnover of more than $30,000 and less than $75,000 for the year ended 30 June 2020;
- Experienced a decline in turnover of 30% or more due to the Public Health Order over a minimum 2-week period within the Greater Sydney lockdown (commenced 26 June and due to end 30 July 2021) compared to the same period in 2019
- Have business costs for which there is no other government support available;
- Have not applied for either the 2021 COVID-19 Business Grant, or the JobSaver scheme;
- For employing businesses, they must maintain their employee headcount on 13 July 2021 while they continue to receive grant payments (businesses that do not maintain their headcount agree to notify Service NSW), and
- For non-employing businesses, the business receiving payments must be the primary income source for the associated person. Individuals with more than one non-employing business may only claim payments for one business.
The evidence requirements for the micro-business grant is slightly different to the Business Grant & JobSaver Scheme as the micro-business grant doesn’t necessarily require the accountants letter, although the letter will support a more efficient application turnaround time. The micro-business can provide business bank statements and their 2020 Tax Return as evidence of a turnover decline.
For more information on the Micro Business Grant and the details, the links have been embedded throughout.
If you’d like to discuss your situation with us, please do not hesitate to reach out.