NSW Lockdown Support Update Sept 2021
Reconfirmation process for JobSaver & the Micro-business Grant
If your business currently receives payments under the NSW JobSaver or Micro-business Grant schemes, you will now need to reconfirm your eligibility each fortnight to continue receiving payments.
What needs to be confirmed?
Each fortnight, your business will need to reconfirm that it:
Continues to experience a decline in turnover of 30% or more; and
Has maintained employee headcount stated in the application. Note that if your headcount changes, you are obliged to notify ServiceNSW.
Measuring decline in turnover
There are two main approaches to validate your decline in turnover depending on whether the business has traded during the relevant fortnight:
If your business was not trading during the relevant fortnight
There is no requirement to perform a decline in turnover calculation. You can simply select 'yes' on the confirmation screen to indicate that your business has continued to experience a decline in turnover of at least 30%.
If your business was trading during the relevant fortnight
You will need to determine if your business continues to meet the 30% or more decline in turnover eligibility criteria. There are three potential methods you can use but whichever method you use, you will need to use the same method for each subsequent fortnight.
Method 1 – 2019 or 2020 comparison period using testing period fortnight
If your initial comparison period was in 2019 or 2020, then you can use the same year but adjust the comparison period to match the current fortnight being tested.
For example, if you initially compared the period of 26 July to 8 August 2021 to 26 July to 8 August 2019, and you are now reconfirming your eligibility for the period of 13 September to 26 September 2021, then your comparison period is 13 September to 26 September 2019.
You cannot use 13 September to 26 September 2020 as your comparison period in this example.
Method 2 – 2019 or 2020 comparison period using original testing period
If the initial comparison period was in 2019 or 2020, then you can use the same year and comparison period that you used in your original application.
For example, if you initially compared the period of 26 July to 8 August 2021 to 26 July to 8 August 2019, and you are now reconfirming your eligibility for the period of 13 September to 26 September 2021, then your comparison period remains 26 July to 8 August 2019. This comparison period will remain fixed for all future periods.
Method 3 - 12 June to 25 June 2021 comparison period
If 12 June to 25 June 2021 was used as your initial comparison period, then you must use the same period as your initial application when reconfirming eligibility.
For example, if you initially compared the period of 26 July to 8 August 2021 to 12 June to 25 June 2021, and you are now reconfirming your eligibility for the period of 13 September to 26 September 2021, then your comparison period remains 12 June to 25 June 2021. This comparison period will remain fixed for all future periods.
No further documentation required
ServiceNSW states that you will not need to provide any additional evidence or attach any documentation when reconfirming your eligibility. However, it is essential that you maintain adequate records to show evidence of your eligibility in the event of an audit.
Comparison period FAQs
I had a three week comparison period. How do I do the comparison?
If the comparison period used in your initial application was more than 2 weeks (for example, a 3 week period), the turnover amount for the comparison period must be converted to a fortnightly amount for comparison purposes to the current turnover by dividing by the number of days in the period and multiplying by 14.
What happens if the business is ineligible one fortnight but eligible the next?
The reconfirmation only tests the relevant fortnight. Becoming ineligible for one fortnight does not disqualify your business from becoming eligible again in a future. Some businesses may be eligible one fortnight and not eligible the next if their decline in turnover decreases again.
Can I delay confirming eligibility?
Yes, but your business will not receive payment until confirmation of eligibility has been received. Some businesses might prefer to wait until month-end accounting records are finalised to confirm eligibility. ServiceNSW states that payments will be made within 5 days of your business reconfirming its eligibility.
Reconfirming headcount
Your employee headcount was noted on your original application. This was the number of people you employed in NSW including full time, part time and long-term casuals that had been employed by the business for more than 12 months at the time of the application.
JobSaver requires your business to maintain this same headcount to qualify to receive payments unless the employee is no longer employed due to circumstances outside of your control, such as resignation, death or where you have fairly terminated the employee because of misconduct.
If your full time, part time or long-term casual employees, have been stood down, they are still included in the headcount. During a stand down the employment relationship remains (their role has not been terminated), the employee is not paid (unless they are taking paid leave), and they continue to accrue annual leave. See the FairWork website to clarify how and when an employer can stand down employees and the documentation requirements.
Payment amounts
JobSaver
40% of the weekly payroll for work performed in NSW:
Micro-business Grant
Payments of $1,500 per fortnight are made to those eligible for the Micro-business Grant.
How to reconfirm your eligibility
You can reconfirm the eligibility of your business for JobSaver or the Micro-business Grant by logging into your ServiceNSW business profile.
You should also receive reminders from ServiceNSW to confirm the eligibility of your business. For security, it is best to go straight to your business profiles rather than clicking on any email links.
What do I do if I no longer need assistance?
Log into your ServiceNSW business profile and request a withdrawal.
How to contact us
We’re available to assist you with the lockdown support for your business.
Some of the details for the grants are not yet available. We will keep you up to date.
Contact us HERE: https://www.nineadvisory.com/contact-us
The material and contents provided in this publication are informative in nature only. It is not intended to be advice and you should not act specifically on the basis of this information alone. If expert assistance is required, professional advice should be obtained.
Updated 22 September 2021.
Want Proactive Advice To Keep You On Track Each Month And Guaranteed Execution?
Work with us for 90 days and if your business is not transformed, we'll give you your money back.
