Covid lifeline thrown to NSW businesses

Restaurants and other small businesses crippled by the sudden and unexpected lockdown of Greater Sydney will be eligible for cash grants and compensation.

NSW Treasurer Dominic Perrottet in Sydney on Tuesday. Picture: Christian Gilles

Restaurants and other small businesses crippled by the sudden and unexpected lockdown of Greater Sydney will be eligible for cash grants and compensation, under a financial rescue package announced by the NSW government and welcomed by business groups.

The package will provide grants of up to $10,000 to small businesses, depending on their decline in turnover, along with payroll tax deferrals and other stimulus measures to try to alleviate costs and the loss of trade caused by the shutdown.

The state recorded 19 fresh cases of Covid-19 in the 24 hours to 8pm on Monday night, with all but two of the cases linked to previous outbreaks.

Wes Lambert, chief executive of Restaurant and Catering Australia, said the support package would provide significant assistance to “thousands of small restaurants and cafes” seeking to mitigate the financial losses.

The government also announced an extension of the state’s Dine and Discover program to cover takeaway and delivery services, but only if the vouchers were redeemed directly with a restaurant rather than a third-party delivery service.

“The business grants and payroll deferrals will help businesses with cash-flow issues at a time when they need it most,” Mr Lambert said, adding that the extension to the Dine and Discover program would also provide necessary assistance.

“With tens of millions of vouchers still unspent, the message is this: get out and spend your vouchers. Help these businesses stay afloat and help them continue to employ staff. They need your help.”

Treasurer Dominic Perrottet said three different grant amounts would be made available for small businesses, depending on how they were affected by the restrictions.

A $10,000 grant would be made available to businesses that had recorded a 70 per cent decline in turnover while a $7000 payment would be given to those that experienced a 50 per cent decline in earnings. A $5000 payment would be made available to businesses that recorded a 30 per cent decline, the Treasurer said.

Daniel Hunter, chief executive of Business NSW, praised the state government for acting quickly to deliver the support.

“This will be one of the fastest and largest business support packages from any state in Australia in response to the pandemic,” Mr Hunter said.

The total cost of the program will depend on the number of businesses that apply.

Deputy Premier John Barilaro said the measures would help regional operators who had been counting on school holiday visitors from metro areas.

General businesses with a yearly turnover greater than $75,000 but below last year’s payroll tax threshold of $1.2m can apply. Hospitality and tourism businesses will need a turnover greater than $75,000 and an annual wages bill of less than $10m.