NSW to ‘go it alone’ on JobSaver extension

This is in line with the national plan for reopening NSW (which is currently in lockdown amid the COVID-19 Delta outbreak), and is anticipated to occur by 31 October, the federal government said.

The JobSaver payment provides cash-flow support to businesses in Greater Sydney and regional NSW that have an aggregated annual turnover between $75,000 and $250 million and have been impacted by the recent COVID-19 restrictions.

Larger businesses in the hospitality, tourism and recreation industries with a turnover between $250 million and $1 billion may also be eligible for the scheme.

In July, the NSW and federal governments expanded the maximum payments available to businesses through the program after the state extended its lockdown.

The federal government has now said that it will begin to taper funding when NSW meets its vaccination targets.

When NSW’s vaccination rate reaches 70 per cent of the eligible population, JobSaver payments will taper from the current payment rate equivalent to 40 per cent of weekly payroll to 30 per cent, which is anticipated to occur by 10 October.

From 10 to 23 October, the minimum and maximum weekly payments for employing businesses will be reduced by 25 per cent to $1,125 and $75,000 weekly and grants to be 30 per cent of weekly payroll. The grant for sole traders will reduce to $750.

Once NSW hits the 80 per cent vaccination rates, the Commonwealth’s contribution to the program will cease altogether.

The federal government’s plans to end its support have followed its announcement that weekly COVID-19 disaster support payments will be phased out as states and territories reach 70 and 80 per cent vaccination targets.

NSW to continue funding until November

As such, the NSW government has announced that it will “go it alone” to fund an extension of JobSaver to help NSW businesses reopen their doors and enable employees to return to work as restrictions begin to ease.

When NSW reaches the 80 per cent double-vaccination rates, the state government will continue to fund its 50 per cent contribution to JobSaver payments.

At this point, payments will be tapered from 30 per cent to 15 per cent of weekly payroll, the NSW government explained.

This is equivalent to a weekly payment range (paid fortnightly) of $562.50 and $37,500 (down from the current range of $1,500 to $100,000).

Weekly payments to non-employing businesses (paid fortnightly) will reduce from the current $1,000 to $350 at 80 per cent double dose.

JobSaver payments will end altogether on 30 November, which will coincide with further easing of restrictions.

After NSW reaches the 80 per cent vaccination target, the Micro-Business Grant will continue to be available at a rate of $750 a fortnight, before it also ends on 30 November.

It’s up to the states to provide support, says Treasurer

Commenting on the federal government’s plans to taper and cease contributions, Treasurer Josh Frydenberg said: “At this point it will be incumbent on the states to provide any necessary targeted business support needed in their jurisdictions relevant to any health restrictions they elect to impose.

“We can’t eliminate the virus. We need to learn to live with it in a COVID-safe way. Our economy has bounced back strongly before once restrictions are eased and is well positioned to do so again when lockdowns lift.”

NSW Premier Gladys Berejiklian said that the JobSaver extension would work alongside the NSW government’s road map and easing of restrictions, which she said would provide certainty to businesses.

“The continuation of JobSaver over the next two months will give businesses across NSW the financial boost they need to get them through the challenge of re-opening their doors,” Ms Berejiklian said.

“The light at the end of the tunnel is so close, and this support will help see businesses and workers out to the other side and prepare them for re-launch.”

NSW Treasurer Dominic Perrottet said that shifting JobSaver from support to recovery would put businesses on the front foot as restrictions are eased and the economy is rebooted.

“JobSaver has helped businesses weather the storm of the latest outbreak and now is the right time to plan for the future so we can get our economy firing again,” Mr Perrottet said.

“I know businesses across the state are keen to open their doors, and are busy planning now that our roadmap is out. There’s renewed optimism in NSW. We are sticking by businesses and giving them the support they need to get back on the road to prosperity with the state only a few weeks away from re-opening.”

By 30 November, the NSW government is expected to have provided over $8 billion in direct support to businesses and individuals including through the JobSaver program and its contribution to the COVID-19 Disaster Payments.

The NSW government will announce its comprehensive economic recovery plan in October, which is aimed at boosting business confidence and jobs, and injecting stimulus as restrictions ease across the state.

More support for ACT

The Commonwealth and ACT governments have announced a jointly funded package of grants to support small-to-medium enterprises (SME) until mid-October, at which point the ACT is expected to reach the 80 per cent vaccination rate.

Additional ACT COVID-19 Business Support Grants

There will be an additional ACT COVID-19 Business Grant Extension payment of $10,000 for all employing businesses and $3,750 for non-employing businesses.

It will be paid to all businesses that are eligible for the COVID-19 Business Support Grant in industries still significantly impacted by health restrictions.

In addition to the payments mentioned above, another top-up payment will also be made for larger businesses at the following amounts:

• $10,000 for employing businesses with a turnover greater than $2 million and less than $5 million
• $20,000 for employing businesses with a turnover greater than $5 million and less than $10 million
• $30,000 for employing businesses with a turnover greater than $10 million

The package will be split on a 50-50 basis between the Commonwealth and the ACT governments, with the ACT government to administer the program.

COVID-19 Tourism, Accommodation Provider, Arts, Events, Hospitality and Fitness Grants

This grants program will also be expanded, and will offer:

• $5,000 for non-employing businesses
• $8,000 for employing businesses with turnover less than $2 million
• $15,000 for employing businesses with turnover greater than $2 million and less than $5 million
• $25,000 for employing businesses with turnover greater than $5 million

In addition, ACT businesses in the fitness/sport industry, such as gyms, personal trainers, and dance teachers/instructors, will now also be eligible to apply to the grants program due to the disproportionate impact of the COVID-19 crisis on these businesses, the federal government said.

Commenting on the support package, Mr Frydenberg said that this jointly funded package will also taper once the state reaches 70 per cent full vaccination rates, “to ensure support is focused on those industries that remain closed or severely restricted.

“The Commonwealth will cease funding state business support programs at 80 per cent full vaccination in line with the National Plan for Reopening,” he said.

“At this point it will be a matter for each state to decide whether any additional targeted business support is needed in their jurisdictions as a result of any health restrictions they elect to impose.”

ACT Chief Minister Andrew Barr said that the extended grants package will provide further transitional support for businesses as the economy is gradually reopened in October and November.

He said: “The COVID-19 Business Support Grant program has been an important lifeline to businesses impacted by significantly reduced turnover. This is the largest and most complex grants program that any ACT Government has ever administered.

“Our detailed pathway forward has focused on protecting public health, getting people back to work and supporting the mental health and wellbeing of the ACT community.

“The ACT Government has worked constructively with the Treasurer Frydenberg and I thank him for his willingness to work with us on this shared goal.”

Senator for the ACT Zed Seselja said that the extension of the package as well as additional assistance for the fitness industry would help protect jobs in Canberra and the economy during a challenging period.

He said: “As we approach the end of lockdowns and as vaccination rates get higher, it is now critical that Canberra businesses be allowed to get back to work in line with the national plan for re-opening.”

[Related: Qld tourism injected with $70m grants]