COVID-19 Micro-business Grant FAQs
How do I determine if my business has aggregated annual turnover of between $30,000 and $75,000?
Aggregated Annual Turnover is calculated by applying the Income Tax Assessment Act 1997 aggregated turnover definition when assessing whether a business had ‘national aggregated annual turnover’ between $30,000 and $75,000. This includes the business’s turnover and the Australian turnover of its connected entities and affiliates but does not include non-Australian related entities and affiliates.
A small Australian subsidiary of a large multinational group may therefore be eligible for the Grant.
The decline in Turnover Test – What is turnover? Do I use cash or accruals? Is it NSW turnover or national turnover of the business?
When calculating the decline in turnover, the Guidelines state that the Goods and Services Tax (GST) turnover as defined in A New Tax System (Goods and Services Tax) Act 1999 (Cth) (GST Act) is to be applied when assessing whether a business has experienced a 30% or more decline in national turnover.
Practically, a business should use the accounting method they use when preparing their Business Activity Statement (BAS) – i.e. if they prepare their BAS on a cash basis. They should calculate the decline in turnover using turnover calculated on a cash basis.
The decline in turnover is calculated on all turnover of the business (i.e. national turnover) and not just NSW turnover. It should be calculated based on a minimum of 2 consecutive weeks, but the period used can start midweek.
No guidance has been provided on whether government grants are included in the turnover for not-for-profit businesses.
Which employees are included in the employee headcount?
Employee headcount is the number of employed in NSW who are permanent (full-time or part-time) or have been employed by the business on a casual basis for more than 12 months (long term casuals).
What is meant by maintaining employee headcount? Are employees who have been stood down included in the headcount?
Maintaining employee headcount means the employer will not take active steps to end the employment relationship. Employees who have been stood down under the Fair Work Act 2009 or take leave without pay are considered employees for headcount.
Businesses will remain eligible if their employee headcount declines for reasons outside the employer's control, for example, if employees voluntarily resign or the death of an employee.
Can my business receive the 2021 COVID-19 Micro-business grant if I receive the Commonwealth COVID-19 Disaster Payment?
A business cannot receive the 2021 COVID-19 Micro-business grant if it is a non-employing business and persons associated with the business that derive income from it have received the Commonwealth COVID-19 Disaster Payment since 18 July 2021.
If the business is an employing business, the business may receive the 2021 COVID-19 Micro-business grant. Employees may receive the Commonwealth COVID-19 Disaster Payment provided all eligibility criteria are met for each scheme.
Are there any ongoing reporting requirements to receive the fortnightly payments?
Once deemed eligible, businesses will receive automatic fortnightly payments. Businesses will not need to re-apply.
However, if their headcount has declined due to circumstances outside their control, the business will need to notify Service NSW. They will no longer be eligible for the Grant.
My headcount has declined. What do I do?
If the reduction in employee headcount were a result of circumstances outside the employer's control (such as voluntary resignations, death of an employee), you would not be taken as having had a reduction in employee headcount on 13 July. You will still be eligible to keep receiving the Grant.
If the business reduced its employee headcount due to circumstances within the employer’s control, it would need to notify Service NSW. The business will no longer be eligible for the Grant.
What is a non-employing business?
Non-employing Business means a business that does not have employees. This may include a range of entity types, such as non-employing sole traders, partnerships, trusts, or other businesses without employees.