Service NSW has provided some additional guidance on key aspects of the NSW business support payments and it seems like some of the eligibility conditions have been updated as well. Comments on key developments are below:
Decline in turnover flexibility
Firstly, some additional flexibility is being provided when it comes to passing the decline in turnover test to access the NSW COVID-19 business grant, JobSaver and the micro-business grant. Updated guidance on the Service NSW website indicates that businesses and non-profit entities can pass this test if they can show a decline in turnover of at least 30% due to the Public Health Order over a minimum 2-week period within the relevant test period compared to:
The test period depends on which payment you are looking at:
This additional flexibility will be particularly helpful for entities that have commenced business activities since the comparison period in 2019 and for entities that have undertaken an acquisition, disposal or restructure.
Current GST turnover concept
The concept of ‘current GST turnover’ should be used when applying the decline in turnover test. This means that proceeds from the sale of capital assets should be included in the calculation. Also, Service NSW states that modifications made to the concept of ‘current GST turnover’ for the purposes of JobKeeper apply for the purpose of these payments too (as far as they are relevant).
See the ATO modifications here.
Guidance from the NSW Government also indicates that when applying the decline in turnover test, if the entity accounts for GST on an accrual basis, you should use this method. If the entity accounts for GST on a cash basis, you should use this method.
Given the way this area is developing (ie, multiple times a day…), it is important for businesses and advisers to ensure that they are referring to the most recent guidance on the Service NSW website.
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