COVID - 19 Assistance updates 21/04/20

A couple of updates.

Job keeper is now open for registration.

1. You will need to have a myGovID Set up for your business to register. (please note that previously businesses only registered interest)

2. Eligible employees need to be registered from 4/5/20.

3. To claim job keeper from 30/3/20 ensure you are registered before 30/4/20.

4. All job keeper payments need to be made for the first two fortnights before 30/4/20 – this is the only period where it will be backdated from this point on it must be paid in time to claim.

National Code on Commercial Lease

1. This applies to businesses where the landlord or tenant are eligible for the job keeper (at least a 30% drop in sales)

2. Half the drop in sales percentage needs to be provided as a waiver ore rent free period with no claw back

3. The other half of the drop is to be a deferral over the balance of the lease or at least 24 months whichever is longer. Lease may need to be extended.

4. Example: Current rent $100k p.a

i. Turnover has fallen 50%,

ii. so the tenant is entitled to a reduction of $50k p.a

iii. Half of the $50k ($25k) needs to be provided as rent free/waiver.

iv. Other $25k is deferred, spread evenly over the term of the lease, or at least 24 months.

1. All negotiations are to be made in good faith

2. Lease can not be terminated during the COVID-a9 period

3. Tennant to remain committed to the lease or protections may be forfeited

4. Any reductions in outgoings must be passed onto the tenant

5. Landlords should seek to waive recovery of outgoings during periods of non-trade

6. Landlords can not draw on security deposits or personal guarantees

7. No fees or interest on arrears of rent

NSW Business Grant – $10,000 to be used on fixed expenses

Apply at : https://www.service.nsw.gov.au/transaction/apply-small-business-covid-19-support-grant

1. Several clients have advised they have applied for this and it has been a fairly straight forward process

2. Requirements are listed below – note that the accountants letter has not been required

i. your most recent Business Activity Statement

ii. a statement from your accountant confirming that your small business:

1. has an annual turnover above $75,000

2. sits below the NSW Government 2019-20 payroll tax threshold of $900,000

3. had a decline in turnover of 75% or more by providing:

4. the turnover for a two week period since 30 March 2020

5. the turnover for the equivalent period in 2019 or a comparable period in 2019/2020 when the equivalent period is not an accurate representation of your usual or average turnover