NSW unveils $1bn COVID-19 SME support package

Coined the “Small Business Support Program”, businesses with an annual turnover of between $75,000 and $50 million will now be provided up to 20 per cent of their weekly payroll over the month of February, with payments ranging from $500 to $5,000. 

As per a statement by the NSW government, those eligible will either have experienced a decline in turnover of 40 per cent or more over the month of January or from 1 February to 14 February, comparative to the same period in either 2021 or 2020.

Businesses must also maintain their employee headcount from the date of the scheme’s announcement. 

Applications for the Small Business Support Program will open via Service NSW from “mid-February”. 

Further, the NSW government has said that its existing Small Business Fees, Charges and RAT Rebate will be increased from $2,000 to $3,000, with recipients eligible to use the funds on government fees as well as obtaining rapid antigen tests (RATs). 

NSW Premier Dominic Perrottet said that, despite daily case numbers now declining, the NSW government is determined to support businesses most impacted by the omicron variant.

“As part of the package, we are introducing the Small Business Support Program to help support businesses that experienced the worst effects of the Omicron wave,” Mr Perrottet said.

NSW Treasurer Matt Kean said that it was vital to support businesses to ensure they can maintain operation. 

“As we continue to protect the health and safety of our community, we have to ensure our economy is resilient and our businesses are supported so they bounce back from this most recent phase of the pandemic,” Mr Kean said.

“By ensuring businesses keep their doors open and their employees paid, we are confident our economy will bounce back strongly as it did last year.”

Also introduced in these new support measures is a two-month extension to the current eviction protections provided to small retail and commercial tenants under the Retail and Other Commercial Leases (COVID-19) Regulation 2021, which will now conclude on 13 March.

Mr Kean said on the extension: “Small business is the engine room of our economy and we need to make sure we support impacted businesses through this latest Omicron wave.

“With staff shortages and reduced foot traffic, many businesses are struggling at the moment but the ability to negotiate rent will give them a buffer so they can keep the lights on now and recover more quickly.”

CBA Group executive business banking Mike Vacy-Lyle shared his support of the package introduction, saying the CBA Group knows that many businesses are attempting to navigate the omicron variant, including staffing shortages and supply chain disruptions. 

“So far, we have seen the impact on businesses vary depending on the industry, the life stage of a business, and the geographic location,” he continued. 

“While our current data shows the majority of our business customers remain resilient in the face of the Omicron variant, we know there are some that need assistance and we will continue to do what we can to ensure businesses are supported to navigate this period.” 

The announcement of further SME support by the NSW government comes one day before the ASX-listed lender Prospa confirmed that it would be reintroducing its eight-week loan repayment pause from the end of February. 

[Related: Prospa to relaunch 8-week repayment pause]