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Businesses impacted by delayed lockdowns in regional New South Wales will now be eligible for JobSaver, after the state clarified its eligibility guidelines.
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JobSaver eligibility clarified to include regional lockdowns
27 August 2021
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The accounting profession has welcomed late changes to the NSW government’s JobSaver eligibility requirements, which will no longer see businesses bound by proving a 30 per cent decline in turnover between 26 June and 28 August, after the end date was dropped.
Service NSW has also provided certainty for regional businesses by dropping references to the Greater Sydney lockdown.
Chartered Accountants Australia and New Zealand tax leader Michael Croker said the eligibility amendments provide much-needed clarity for regional businesses, who, in many cases, have felt the impacts of lockdowns later than those in metropolitan areas.
“That means a hair salon in Wagga Wagga whose business suffered only after the regions went into lockdown can apply and, if eligible, receive JobSaver from the start of the regional lockdown,” Mr Croker said.
“This is a huge win for regional NSW businesses, who went into lockdown later than Sydney, but are feeling the pinch and require a helping hand, right now.”
Mr Croker said the Berejiklian government’s previous eligibility requirements emerged as a massive pain point for regional small business owners, who have spent weeks scrambling to understand if they qualify for the payment, and how they can access it.
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“Although JobSaver has always been accessible to regional businesses adversely impacted by the Greater Sydney lockdown such as tourism operators reliant on travellers from Sydney, businesses in country NSW which have only been impacted since the commencement of regional lockdowns can now also apply,” Mr Croker said.
“We commend NSW government officials for working closely with professional associations such as CA ANZ, hearing our feedback and rolling out the changes.”
Changes to JobSaver’s eligibility window come alongside news of the scheme’s expansion to support struggling businesses in the hospitality and tourism sectors.
The expansion to large businesses in the tourism, hospitality and recreation industries will see those with an annual turnover between $250 million and $500 million receive 40 per cent of their weekly payroll at a maximum of $300,000 a week.
Larger businesses with a turnover between $500 million and $1 billion can expect up to $500,000 each week.
The JobSaver extension will come with its own set of rules, which will require businesses to prove a 50 per cent decline in turnover for those with a turnover of up to $500 million, and a 70 per cent decline for those with a turnover of up to $1 billion.
Mr Croker said the expansion was welcomed, and that CA ANZ will be working closely with businesses to determine their eligibility.
“In more good news from the NSW government, previously ineligible larger businesses in the hospitality, tourism and recreation sectors will also benefit from an extension of the JobSaver program to these sectors where the applicant has an aggregated annual turnover of more than $250 million and up to $1 billion,” Mr Croker said.
“Chartered accountants will be working hard to help clients determine their eligibility under the revised JobSaver rules, as we know many NSW businesses see JobSaver as their lifeline.”
The JobSaver extension and eligibility amendments follow weeks of frustration among the state’s businesses, after payment delays stretched to a month as a result of cumbersome processing at Service NSW, whom critics say were ill-equipped to administer the scheme.
Data revealed by Service NSW last week showed 208,775 applications worth $1.6 billion in financial support have now been approved for payment, out of a total of 271,896 applications seeking $2.3 billion.
A further 3,316 applications worth $26 million have been declined, while 59,805 applications worth $669 million have yet to be assessed.
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