$3,000 recovery grants for small businesses and NFPs

A new scheme providing $3,000 grants to small businesses and NFPs has been launched in NSW. The government grants will provide relief to qualifying organisations impacted by COVID-19.

The Recovery Grant helps NSW small businesses and NFPs meet the costs of safely reopening or up-scaling operations from 1 July 2020.

Grants of between $500 and $3,000 are available.

Eligible businesses and NFPs

NSW based small businesses and not-for-profit organisations that have experienced a decline in turnover, as a result of COVID-19, may apply for a Recovery Grant.

Key points of eligibility include small businesses and NFPs that:

  • Have an ABN registered in NSW (make sure all your business details are up to date on the Australian Business Register – this is used to determine eligibility).
  • Have an annual turnover of more than $75,000 (a Business Activity Statement must be provided as evidence).
  • Where a small business does not submit a BAS to the Australian Tax Office, and meets all other criteria, the small business should contact Service NSW to discuss further. In these cases, an income tax declaration may be accepted as evidence of an annual turnover of $75,000.
  • Employ less than 20 full-time equivalent (FTE) staff (non-employing businesses can apply)
  • Report a payroll below the NSW 2019–2020 payroll tax threshold of $900,000
  • Are in a highly impacted industry by the Public Health (COVID-19 Restrictions on Gathering and Movement) Order 2020 (see guidelines)
  • Have experienced at least 30% decline in turnover from March to July 2020 compared to the equivalent period (of at least 2 weeks) in 2019
  • Have costs associated with safely reopening or up-scaling your business from 1 July 2020.

If you have received a COVID-19 small business support grant of up to $10,000, you may also be eligible to apply for the $3,000 COVID-19 small business recovery grant.

See the NSW website for guidelines about which industries that are listed as highly impacted by the Public Health (COVID-19 Restrictions on Gathering and Movement.

Uses for funds

Grant recipients are required to use the money for reopening and upscaling on valid expenses that can include, but are not limited to, the following:

  • fit-out changes and temporary physical changes (for example, plastic barriers at checkouts)
  • staff training and counselling
  • business advice and continuity planning
  • cleaning products and additional cleaning services
  • additional equipment necessary to comply with social distancing or other public health measures
  • marketing, communications and advertising
  • digital solutions (for example, e-commerce or business websites).

If you have received a COVID-19 small business support grant of up to $10,000, you may also be eligible to apply for the $3,000 COVID-19 small business recovery grant.

Applications close 11:59pm Sunday 16 August 2020 so don’t delay your submission.

More information

You will need to have records of business decline in turnover from March to July 2020 and records of costs associated with reopening from 1 July 2020.

Applications close soon, so we encourage small businesses and NFPs to obtain more details from the NSW government website.

For tailored advice clients can contact Hopscotch Accounting.

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