Thousands of NSW small businesses not eligible for Covid payments

Those needing help the most have been left out in the latest government announcement, with some hailing the decision as “defying logic”.

Small business owners believe the NSW government has abandoned them, with the Premier’s latest decision “defying logic” by leaving out those most in need of support.

On Tuesday, in response to Greater Sydney’s two-week lockdown, NSW Premier Gladys Berejiklian announced a small business support grant.

Up to $10,000 will be available for small businesses and hospitality venues which have seen a reduction in turnover because of the shutdown sparked by the Bondi Delta variant cluster.

However, restaurateur Ravi Prasad is painfully aware that he doesn’t qualify for the support.

Businesses making less than $75,000 per annum or that were created in the past 12 months have been iced out of the support package.

For Mr Prasad, his business called Uma, Curry and Roti, which opened in March, is both of those things.

“It’s just terrible. I’m flabbergasted,” he told news.com.au. “It defies logic.”

“The government policy is to kick you while you’re down.”

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Mr Prasad launched Uma in March this year.

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Mr Prasad opened his restaurant in Darling Square in March.

In an unlucky twist, he was just two weeks away from recouping his losses when the lockdown hit.

“Within 40 meals of breaking even,” he said. “We were literally two weeks away, we were so close.

“Now that cycle of building it back up, that begins again.”

If the lockdown goes for more than a fortnight – which is looking more likely with NSW recording 31 new cases on Friday – then Mr Prasad will have to shut up shop for good.

“If this continues like last time, we’re finished,” he said.

“I can’t keep paying the bills indefinitely.”

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Businesses must have made more than $75,000 in annual revenue by July 1 this year to qualify, which is not possible for many industries hit hard by the Covid-19 pandemic.

Another business owner, Stella Stead, said the government announcement had left her in tears.

“I sat in the carpark and cried for 25 minutes today,” she told news.com.au.

Ms Stead, 43, has been running an early childhood consulting business in Wollongong for the last four years.

As a microbusiness owner with one other staff member, her revenue sits just under $75,000, disqualifying from the grant.

Small business owners are “the ones that have sacrificed so much to almost be at $75,000, to only not get seen by the Government again for some business relief,” she said.

Closed business and quiet streets in the CDB during Sydney’s lockdown. Picture: NCA NewsWire/Nikki Short

Thousands of Australians have been excluded from the support package.

According to the Australian Bureau of Statistics, there are 20,000 businesses in Sydney’s CBD that make less than $50,000 a year.

All sorts of Aussies have been affected, not just hospitality and tourism operators.

Sole traders and subcontractors such as martial arts instructors, florists, hairdressers and even personal trainers have come to City of Sydney Councillor Jess Scully for help.

Ms Scully has started a petition to NSW parliament calling for the exclusions to be removed.

“I really commend the Government for stepping up and offering the support grants,” she told news.com.au.

“A lot of businesses knew straight away that they were going to get some support.

“But unfortunately a lot of people have slipped through cracks.”

She added: “A lot of people have used up all their reserves (from the previous lockdown).”

Businesses have been forced to shut down amid stay-at-home orders across the city. Picture: NCA NewsWire/Christian Gilles

To get the money, businesses must show their turnover has been drastically affected, by comparing it to their 2019 profits.

The scheme is split up into the Small Business Covid-19 Support Grant and the Hospitality and Tourism Covid-19 Support Grant.

The small business scheme is available to businesses or sole traders with a turnover of more than $75,000 per annum and below the NSW Government 2020-21 payroll tax threshold of $1.2 million as at July 1, 2020.

Firms must have fewer than 20 full-time staff or equivalent and an Australian Business Number (ABN) registered in NSW, or show primary operations are based in the state.

The scheme for hospitality and tourism operators can be accessed for traders with a turnover of more than $75,000 and an annual wages bill below $10 million as at July 1, 2020. An ABN in NSW is also required, or evidence operations are primarily located in the state.

The full guidelines for the grants will appear on the ServiceNSW website soon.

The Government is looking into whether businesses operating for less than 12 months can still apply for the grant, if they can prove substantial losses to their revenue.

They said the decision to set the $75,000 limit was consistent with other state packages, including the Victorian Government’s $380 million Business Costs Assistance Program.

Small businesses with a turnover of less than $75,000 are encouraged to apply to the $1500 Small Business Fees and Charges Rebate Scheme.

There are fears the lockdown may continue for more than two weeks, which would be a death knell for struggling businesses. Picture: NCA NewsWire/Christian Gilles

“How do you restimulate entrepreneurship in a community [with rules like these]?” Mr Prasad asked.

“[The policy] seems like a travesty.

“The people who should be rewarded are those that went and gave it a shot.”

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