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Writer's pictureAnthony Mazza

COVID-19 NSW JobSaver

COVID-19 JobSaver payment opened on 26 July 2021. An expansion of the scheme was then announced on 28 July 2021, increasing the:

  • maximum amount eligible businesses could receive to $100,000, and

  • the maximum national aggregated turnover threshold to $250 million (inclusive).

Under the scheme, eligible businesses and not for profits will receive 40 per cent of their weekly payroll (at a minimum of $1,500 and a maximum of $100,000 per week) provided that they maintain their NSW employee headcount.

The NSW Government has provided further detail on the COVID-19 JobSaver payment, including greater clarity around the eligibility requirements and the documentation required for application.


How to Apply for the JobSaver Payment

Applications for the JobSaver payment are made through the Service NSW website and are open until 11:59 pm on 18 October 2021.


To apply:

  • Check you meet the eligibility criteria.

  • Have your documentation and evidence ready for uploading.

  • Note: You cannot save and resume your application once you’ve started.

  • Select the ‘Apply online’ button.

  • Log in, or create your MyServiceNSW Account.

  • Select and verify your identity documents.

  • When your identity is verified, select ‘Continue’.

  • Confirm your details.

  • Enter your business details and answer the eligibility questions, then select ‘Next’.

  • Provide information about your decline in turnover and upload your supporting documentation, then select ‘Next’.

  • Enter your bank details, then select ‘Next’.

  • Review your application.

  • Check the declaration boxes.

  • Select ‘Submit’ to complete your application.

After submitting your application, you will receive a confirmation email with your application reference number. If you do not receive this confirmation email, check your junk mail folder, and then call Service NSW on 13 77 88 if you’re still unable to locate the email.


Service NSW will review your application and contact you should they require additional information to support your application. If your application is approved, funds will be transferred to your specified bank account within five business days from the approval date.


Eligibility

Businesses (including sole traders) and not-for-profits will be eligible for the COVID-19 JobSaver payment if they meet the criteria below.

  • Have an ABN registered in NSW or demonstrate that they are physically located and primarily operating in NSW on 1 June 2021.

  • Have a national aggregated annual turnover of between $75,000 and $250 million (inclusive) 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.

  • Employing businesses maintain their employee headcount as of 13 July 2021 while receiving JobSaver payments (businesses that do not maintain the declared headcount must notify Service NSW).

  • 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.

Businesses that are not eligible

  • A business will not be eligible if any of the following criteria apply:

  • the entity is a non-employing business if individuals associated with the business and deriving income from the business have received a Commonwealth COVID-19 Disaster Payment since 18 July 2021.

  • the Major Bank Levy was imposed on the entity or a member of its consolidated group for any quarter before 1 July 2021.

  • the entity is an Australian government agency (within the meaning of the Income Tax Assessment Act 1997).

  • the entity is a local governing body.

  • The entity is wholly owned by an Australian government agency or local governing body.

  • The entity is a sovereign entity or owned by a sovereign entity.

  • The entity is a company in liquidation or provisional liquidation.

  • The entity is an individual who has entered bankruptcy.

  • The entity has been found to have been engaged in fraud.

  • The entity primarily earns passive income (rents, interest, or dividends).

  • The business is a Table A provider within the meaning of the Higher Education Support Act 2003.

  • The business registered its Australian Business Number (ABN) after 1 June 2021 or a business that has backdated its ABN before 1 June 2021 for eligibility.

JobSaver Amount

Eligible businesses will receive the equivalent to 40% of Weekly Payroll for work performed in New South Wales.


Eligible businesses will receive the equivalent to 40% of Weekly Payroll for work performed in New South Wales.

  • The minimum payment will be $1,500 per week, and

  • The maximum payment will be $100,000 per week.

A Non-employing Business can apply for a payment of $1,000 per week.


Payments will be made fortnightly in arrears, with the first payment backdated to 18 July 2021. The increased maximum payment will take effect from 18 July 2021 (the start of the program). Businesses that have already applied will not need to do anything; their payment will be automatically adjusted consistent with the announced changes.


How is Weekly Payroll calculated?

For JobSaver Weekly Payroll can be determined as follows:

  • Identify the amount disclosed at W1 in the most recent Business Activity Statement (BAS) lodged with the Australian Taxation Office (ATO) before 26 June 2021 for the 2020-21 financial year

  • Exclude all amounts attributable to employees who do not usually work or were not based in NSW during the relevant BAS period. Also, exclude amounts from W1 that have been withheld on behalf of contractors under voluntary agreements.

  • This amount should be divided by the number of days in the BAS period and multiplied by 7. This will give the Weekly Payroll amount.

Item W1 in the BAS includes amounts of wages, salaries and other payments subject to PAYG withholding tax (as defined by the ATO). It does not include superannuation contributions, amounts subject to salary sacrifice, interest or dividends.


Businesses that do not submit a BAS or have no W1 amount should use the ATO definition of W1 to calculate the total wages, salaries and other amounts, excluding amounts withheld on behalf of contractors, for employees who usually worked, or were based, in NSW during April or May 2021. That amount should be divided by the number of days in the month and multiplied by 7. This will give the Weekly Payroll amount.


What you need to apply

To apply, businesses on the highly impacted industries list will need to:

  • declare that you meet the eligibility criteria

  • declare your employee headcount at 13 July 2021

  • if you have employees, declare that you will maintain your employee headcount on 13 July 2021 for the period for which you will receive JobSaver payments. Service NSW must be notified if the headcount declines over the payment period

  • if you do not have employees, declare that the business is the primary income source for the owner of the business

  • submit an Australian income tax return, Notice of Assessment or other documentation demonstrating the business had a national aggregated annual turnover between $75,000 and $250 million (inclusive) for the year ended 30 June 2020

  • provide details of your qualified accountant, registered tax agent or registered BAS agent

  • provide evidence of weekly payroll

  • lodge other supporting documents as required to demonstrate you meet the eligibility criteria.

Businesses not on the highly impacted industries list will need to provide the information above, in addition to a letter from your qualified accountant, registered tax agent or registered BAS agent as evidence of their decline in turnover.


Alternative Circumstances

Businesses that don’t satisfy the above eligibility criteria should contact Service NSW if any of the following alternative circumstances apply:

  • Your ABN is not registered in NSW, but the business was operating in NSW as of 1 June 2021

  • Your business was not operating for the full year to 30 June 2020 (e.g. new businesses)

  • Your business was affected by drought, bushfires or other natural disasters

  • A business acquisition, disposal, or business restructure occurred that impacted the business’ turnover

  • You are a sole trader or small partnership affected by sickness, injury or leave.

Further, if your business does not lodge a Business Activity Stamen (BAS) with the Australian Taxation Office (ATO), the business should contact Service NSW.


A business operates through a trust structure. The business will be required to provide additional information to demonstrate that a national aggregated annual turnover of $75,000 or more is derived through the trust instead of a business linked to trust.


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