By Anica Cunanan, Solicitor at Matthews Folbigg in the Insolvency, Restructuring and Debt Recovery Group
Greater Sydney is currently in a lockdown and has remained in the dark with respect to whether, and when businesses would receive some relief.
Last year, the Federal Government introduced the JobKeeper scheme to assist with keeping businesses afloat (including employees within those businesses) through of the payment of wage subsidies subject to certain criteria.
The Morrison and Berejiklian Governments have announced that NSW businesses will finally receive some relief as we enter the fourth week of lockdown in NSW. It is evident that regardless of whether lockdown is in fact extended past 30 July 2021, businesses have already experienced a substantial hit. Should lockdown continue to be extended, we may see plenty of businesses struggling to make it through this lockdown.
On 13 July 2021, The Premier, Treasurer released some information regarding the new NSW COVID-19 support package, including the following:
- If businesses with an annual turnover between $75,000 and $50 million can prove that they have experienced a 30% decline in turnover, they will have available to them a new business support payment.
- However, further requirements need to be met, such as ensuring that they maintain their employee (including long term casual) staffing levels as at 13 July 2021.
- The amount of payments available for eligible entities will be based on their level of payroll, but these entities can expect payments between $1,500 and $10,000 per week.
- Sole traders are also eligible to receive payments. However, this will be set at $1,000 per week.
Come back for our next blog as further details of this NSW Government support package is released. In particular how these support payments will assist businesses in practice remains to be seen, however there is now at least some relief for businesses to look forward to.
You can view The Premier, Treasurer’s release here: https://www.nsw.gov.au/media-releases/nsw-covid-19-support-package-announced
DISCLAIMER: This blog is provided to readers for their general information and on a complimentary basis. It contains a brief summary only and should not be relied upon or used as a definitive or complete statement of the relevant law. Liability limited by a scheme approved under Professional Standards Legislation.
Matthews Folbigg Lawyers has a specialist team dedicated to Insolvency, Restructuring and Debt Recovery.
If you would like more information or advice in relation to Insolvency, Restructuring or Debt Recovery practice and procedure, please contact Stephen Mullette or Jeffrey Brown on (02) 9806 7459 or (02) 9806 7446, or email stephenm@matthewsfolbigg.com.au or jeffreyb@matthewsfolbigg.com.au.
