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NSW businesses will now receive up to $10,000 per week under a new support measure modelled off 2020’s cash flow boost payment, Prime Minister Scott Morrison has announced.

When Does It Apply?

The new measure will be available from next week- the fourth week of Greater Sydney’s lockdown- and will see eligible businesses receive a minimum of $1,500 and a maximum of $10,000 per week.

Who Is Eligible?

It will be available to non-employing and employing entities in NSW, including not for profits, with an annual turnover between $75,000 and $50 million.

Entities will be eligible if their turnover is 30 per cent lower than an equivalent two-week period in 2019.

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

How Much Is the Payment?

The payment rate will be based on 40 per cent of NSW payroll payments. Non-employing businesses, such as sole traders will see the payment capped at $1,000 each week.

Micro businesses earning more than $30,000 but less than $75,000 would also receive a backdated $1,500 per fortnight payment from week one of the lockdown if they have seen a 30 per cent reduction in turnover.

Payroll tax liabilities will also be deferred for two months.

Disaster payments boosted

The Prime Minister, Scott Morrison, has also announced an increase to the COVID disaster payment, which has been bumped from $500 to $600 for those who work more than 20 hours each week, and from $325 to $375 for those who have lost between “eight and 20 hours a week”.

The payment’s eligibility criteria has been broadened to include all residents of NSW, too, and is no longer limited to those under lockdown in regions declared hotspots by the Commonwealth. The broadened scope of the payment, however, is limited to residents of NSW, as its cost will be offset by the state government.

“The NSW outbreak has proved to be more severe, more dangerous, and it’s in the national interest that we now put in place an upgraded set of arrangements for cooperation with the states and territories,” Mr Morrison said. “Within that, we will first be put in place here with NSW when lockdowns enter into more protracted situations.”

The NSW Treasurer, Dominic Perrottet has also announced additional state support to both residential and commercial tenants as part of the announcement as well. The treasurer announced a land tax rebate to commercial landlords in a bid to stave off commercial evictions.

“We want to encourage retailers right across NSW to work with landlords to make sure that we all get through this difficult time together,” he said.

The state will also provide residential tenancy protections by ruling out any evictions for the next 60 days for workers who have seen an income reduction of at least 25 per cent, and are “doing it tough”. The same land tax rebates will be made to residential landlords, too.

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