Important NSW Business Support Payments Update – New Eligibility Rules

Aug 8, 2021

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.

Please see our comments on key developments below:

Decline In Turnover Flexibility – New Test Periods

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 same period in 2019;
  • The same period in 2020; or
  • The 2-week period immediately before the start of the relevant test period.

The test period depends on which payment you are looking at:

  • COVID-19 business grant: 26 June 2021 to 17 July 2021 (this is changed to 27 May 2021 to 17 July 2021 for entities on the NSW border with Victoria);
  • JobSaver and the micro-business grant: 26 June 2021 until the Greater Sydney lockdown ends.

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.

Applications On Behalf Of Clients

Service NSW has now confirmed that accountants can apply for these payments on behalf of clients. Accountants need to ensure that they have a letter of authority to act on behalf of the business if they are not listed as an associate on the ABR.

Given the way this area is developing (ie, multiple times a day…), it is important for businesses (and their advisers) to ensure that they are referring to the most recent guidance on the Service NSW website.

Tribel Is Here To Help

Please be assured that Tribel Accountants and Business Advisors is committed to keep its clients and others who require assistance informed of any developments. In addition, we will be available to assess you and/or your business in determining eligibility for any government grants and support.

In the meantime, if you have any questions, please feel free to contact the Tribel team.

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.


All of the material published on this web site is for information purposes only and does not constitute advice. This information is of a general nature only and has been provided without taking account of your objectives, financial situation or needs. Because of this, we recommend you consider, with or without the assistance of a Financial Adviser, whether the information is appropriate in light of your particular needs and circumstances

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