Covid NSW: Kean’s angst at feds as state goes it alone in $1b rescue package for businesses

The NSW Government has revealed its disappointment with federal counterparts who vetoed a request for financial support for small businesses that suffered through the Omicron wave.

NSW Treasurer Matt Kean has lashed the Morrison government after the state was forced to go it alone with a $1 billion rescue package to allow small businesses who suffered during the “shadow lockdown” brought on by Omicron to claim up to 20 per cent of the payroll.

Both the Treasurer and Premier Dominic Perrottet expressed ‘disappointment’ with the Morrison government’s veto of a request for financial support for struggling businesses as they revealed the state government’s package, which expected to benefit 100,000 business across the State.

Under its guidelines those businesses with an annual turnover of between $75,000 and $50 million with a decline in turnover of at least 40 per cent in January and anticipated in February will be able to make a claim for a maximum $5000 payment per week.

Treasurer Matt Kean visits the Cannery in Rosebery with Premier Dominic Perrottet on Sunday to announce a financial support for small business affected by the latest covid surge. Picture: David Swift

The payment – which will include a minimum weekly payout of $500 – will be paid out as a lump sum.

While the program has been dubbed “JobSaver 2.0”, it is half that of the original scheme with the federal government this time refusing to match the State payments.

The original joint State and Commonwealth scheme — developed in response to the Delta variant – offered businesses weekly payments of between $1000 and $100,000.

Mr Kean on Sunday took aim at his federal counterparts, saying he was “very disappointed” they had declined the request for assistance.

“I was hoping to make this announcement standing beside Prime Minister (Scott Morrison) today and the Treasurer (Josh) Frydenberg. But they’re not to be found,” he told reporters.

“These are not just NSW businesses, they’re Australian businesses, that pay their taxes to the commonwealth government, that are doing it so tough at this time.”

NSW Premier Dominic Perrottet announces the $1billion financial support package. Picture: David Swift

Premier Dominic Perrottet insisted he remained a proud “fiscal conservative” as he doubled down on criticising the Morrison government.

“I’d like them to provide financial support just like they have in the past. It’s been a partnership over the last two years,” he told reporters.

“When I was treasurer, I also didn’t see eye-to-eye (with them) at various points in time, and you have those constructive and robust discussions.”

Earlier, Mr Perrottet said he didn’t know why the commonwealth government had decided not to co-fund the package.

“That’s really a matter for them to make a decision on. I don’t have an understanding,” he told Sky News.

“I want to use our fiscal strength to get businesses through. When I look at the data I’ve seen … it makes perfect sense from my perspective.”

The government is hoping its $700,000 Small Business Support Program will help those hardest hit by the Omicron wave, which sent many NSW residents back indoors in a self-imposed lockdown.

Damien Monley (left) is the owner of Roxy's in Double Bay and said any government assistance would be welcomed. Picture: David Swift

Along with the payroll payments, the billion dollar package also includes payments of up to $3000 (GST inclusive) per property per month for commercial landlords up until March 13 this year.

The extended Commercial Landlord Hardship Grant is available for eligible landlords who have provided rental relief waivers to affected tenants. The rent relief waived must comprise at least half of any rental reduction provided.

The government is also pouring more money into the arts sector with its Performing Arts package to be extended until April.

Barnaby Joyce on Sunday denied his government was “penny pinching” by ruling out further stimulus.

“The Morrison government has handed billions and billions out (during the pandemic). Drops in the ocean all add up,” the Deputy Prime Minister told Sky News.

“You can’t just keep putting things on the credit card over and over and over again.”

Mr Joyce said if the government contributed it would mean less money for essential commonwealth services such as defence, education and the National Disability Insurance Scheme.

“You’ve got to make hard decisions, that’s what government’s about. Our side of politics is supposed to be one that respects the value of money.”

The Victorian government is expected to follow NSW and announce its own stimulus package as early as this week.

Premier Dominic Perrottet said he believed the State was tracking better than expected, repeating his mantra that it would come through the latest wave “stronger than ever”.

“NSW is tracking better than expected and confidence is returning,” he said.

“And as we did with earlier recoveries, we will come through this recent challenge stronger than ever.”

Mr Kean said the package would help businesses recover from the impacts of the latest wave.

“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,” he said.

Damien Monley, who opened Roxy’s Double Bay in October, said Omicron hit the business hard this month with bookings cancelled and staff having to take days off after testing positive.

“It has felt a bit ‘each man for himself’ at time, but you’ve just got to keep going,” he said.

“Any government assistance is welcomed.

“Staff have used up their sick pay, their holiday pay so there is the question of what happens in the future. It ends up costing me money. We’ve all just got to move on and get on with it.”

Rebate to pay RAT costs for employers

Businesses will be able to claim a rebate of up to $3000 to pay for the cost of rapid antigen tests (RATs) for staff with the NSW government to extend its Covid fees and charges scheme.

Introduced as the pandemic took hold, the scheme originally offered businesses $1500 to cover the cost of fees and charges such as road tolls, licences and council rates.

The rebate was later expanded to $2000.

Businesses will be able to claim rebates on Covid rapid antigen tests. Picture: NCA NewsWire/Sarah Matray

It can now be revealed the government has boosted the rebate by another $1000 while also adding the cost of RATs to the lists of costs businesses can claim for.

For businesses that have not yet accessed the rebate, the entire amount can be used to pay for RATs.

The expansion of the scheme is designed to support worker availability by enabling healthy staff who have been exposed to Covid-19, but test negative, to return to work.

It cannot be used for fines or penalties, Commonwealth government charges or taxes.

Businesses that are eligible will have total wages below a payroll threshold of $1.2 million.

With some businesses spending more money on RATs than electricity, Business NSW chief executive officer Daniel Hunter said the rebate would provide a real benefit to business.

“The extensions of the fees and charges support to include RATs is a great idea and will provide a real benefit for small business owners keen to ensure their staff are healthy for work,” he said.

“As supply and availability of RATs increase, more businesses will be able to access the benefit.”

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