NSW COVID-19 support package announced

The Morrison and Berejiklian Governments continue to work together to support households and businesses in New South Wales during the current COVID-19 lockdown.

Under a new combined support package, the COVID-19 Disaster Payment will be further expanded and increased. The Commonwealth and NSW will also enter into a new 50/50 cost sharing arrangement for a new business support payment to be implemented and administered by NSW.

From week four of a lockdown because of a Commonwealth Government declared hotspot, the COVID-19 Disaster Payment will increase to $600 if a person has lost 20 or more hours of work a week or $375 if a person has lost between 8 and less than 20 hours of work a week.

The Commonwealth and NSW have also agreed that from 18 July 2021 the COVID-19 Commonwealth Disaster Payment will be available to those outside Commonwealth declared hotspots in NSW that meet the criteria for the payment.

The NSW Government will fund any payments outside a Commonwealth declared hotspot, with the Commonwealth continuing to fund payments to recipients in a Commonwealth declared hotspot.

This support will be offered to any other state or territory that experiences an extended lockdown.

A new business support payment will also be available to entities with an annual turnover between $75,000 and $50 million who can demonstrate a 30 per cent decline in turnover.

To receive the payment, eligible entities will be required to maintain their full time, part time and long term casual staffing level as of 13 July 2021.

Eligible entities, which includes not-for-profits, will receive payments of between $1500 and $10,000 per week based on the level of their payroll.

For non-employing businesses, such as sole traders, the payment will be set at $1000 per week.

The new small business support payment combined with the substantial income support being provided through the COVID-19 Disaster Payment will mean businesses and individuals who have been affected by this extended lockdown will get the support they need to get to the other side.

Prime Minister Scott Morrison said as the pandemic evolved so did the responses from the Commonwealth and state governments.

“Up until now the Commonwealth has provided the same support to that offered to all other states and territories, consistent with the national approach agreed by National Cabinet last month,” the Prime Minister said.

“As the outbreak has worsened well beyond what we have recently seen in other states and territories, it is in the national interest to enable increased assistance, in partnership with the NSW Government, for workers, business and households, to ensure the lockdown can be maintained to arrest the latest outbreak.

“This new support represents a new national approach and will apply to other states and territories in the event they face similar circumstances.

“We’ve been working closely with the NSW Government to ensure we can deliver targeted and timely support that gets where it needs to be as quickly as possible.

“As lockdowns extend into another week in NSW, households and businesses need this assistance to get them through the lockdown to the other side, ready to reopen."

The Commonwealth and NSW governments will also deliver a $17.35 million mental health support package for NSW including for services through Lifeline, headspace and Kid’s Helpline.

Premier Gladys Berejiklian said the support package would help businesses and families across NSW get through a difficult period.

“Our number one priority remains the health and safety of the people of NSW while also keeping our economy strong as we manage the current COVID-19 challenge,” the NSW Premier said.

“We are pleased to be able to increase our targeted support in conjunction with the Commonwealth and this assistance will ensure we get through the lockdown and come out stronger on the other side.”

Treasurer Josh Frydenberg said the Morrison Government was stepping up to support NSW households and business when they need it most as the state seeks to suppress the delta variant.

“The outbreak in NSW is a timely reminder we are still in the midst of a global pandemic and that there is much work to do to secure our economic recovery,” the Treasurer said.

“The new small business support payment, to be funded on a 50/50 basis with the NSW Government, will support up to an estimated 500,000 entities employing more than 3 million people.”

“Our increased support builds on the $52.4 billion we have already delivered to households and businesses in NSW during the pandemic.”

NSW Treasurer Dominic Perrottet said the package would help thousands of businesses across the State.

"We have done this before and we can do it again and this targeted support will help those who need it,” the NSW Treasurer said.

“If you’re a worker, a sole trader, a small or medium business or a big employer – we've got your back.

“This package will help families and businesses weather the current storm and ensure we can hit the ground running once this current outbreak is under control."

More information will be available on the Service NSW website later this week.