Since its first announcement, several changes have been made to the JobSaver program to help more NSW businesses during the lockdown. 

However, starting 10 September 2021, the state government requires businesses to submit
additional proof to continue receiving payments from the JobSaver scheme. Click here to
read the September update.

JobSaver Program

This program is available to businesses with an annual turnover of between $75,000 to $250 million who have experienced a 30% revenue decline due to lockdown.

The amount of maximum weekly payments available has increased since the initial announcement. Eligible businesses can receive funding of between $1,500 to $100,000 weekly instead of the original $10,000 weekly ceiling. Take note that the payment is equivalent to 40% of the employees’ weekly NSW payroll.

Meanwhile, businesses with no employees such as sole traders can receive weekly payments of up to $1,000.

According to the NSW Service website, interested applicants should refer to their most recent Business Activity Statement (BAS) provided by the Australian Taxation Office (ATO) before 26 June 2021 to determine their weekly payroll.

Eligible businesses can use this funding for salaries and wages, utilities and rent, marketing and communications, perishable goods, and financial or legal advice, among others. The funds can be credited within five to ten working days from the approval date. 

The application for JobSaver is open until 18 October 2021.

Eligibility

To be eligible for this government support, businesses must have:

  • an active Australian business number (ABN)
  • actual business operations in NSW on 1 June 2021
  • an annual turnover between $75,000 and $250 million for the year ended 30 June 2020
  • experienced a 30% or more decline in turnover due to stay-at-home restrictions compared to a) the same period in 2019, b) the same period in 2020, or c) the 2-week period before the lockdown (i.e., 11 to 25 June 2021)
  • maintained employee headcount on 13 July 2021 while the JobSaver payments are ongoing (for employing businesses) 
  • prove that the business is the primary income source for the associated person (for non-employing businesses); an eligible sole trader can only claim payments for one business

You can also learn more about this government support through the official NSW Service website. Click here.

September Update on the JobSaver Program

Starting 10 September 2021, businesses must reaffirm their decline in turnover every two weeks to continue receiving fortnightly JobSaver payments, Service NSW stated in an email to participating businesses. In addition, JobSaver recipients must also show they have maintained their employee headcount.

The email further states that businesses have the option to request to withdraw from the program if they are “no longer impacted by COVID-19 restrictions.”

“This has come into effect as payments have been extended,” a Service NSW spokeswoman said.

The sudden announcement surprised businesses, bookkeepers, and accountants. As a result, it received a backlash from the accounting profession and the business community, saying that the state government should’ve consulted with the profession first before implementing changes. 

For more information about this change, you can also read this article from The Sydney Morning Herald: Red tape nightmare: JobSaver changes stun struggling businesses

 

This article was first published on 25 August 2021 and was updated on 13 September 2021 to include the latest changes on the JobSaver Program. This information is current, and we will update you once we receive further updates.