Jobsaver -- important announcements for NSW businesses
Businesses receiving JobSaver must report fortnightly. That’s the decision that’s been made by the NSW Government.
There are a few other important things you need to know about Government assistance as we look towards the end of lockdowns. And of course, there is a lot to consider as we work towards ‘freedom day’, October 11.
By ATB Partners
Fortnightly reporting
After consultation with key industry groups across the state, the NSW Government has decided that all businesses receiving the JobSaver payment must report fortnightly to have their eligibility for the payment confirmed.
Email reminders will be sent to JobSaver recipients from Services NSW each fortnight, and it’s important to note that if you become ineligible during one fortnightly period, this does not disqualify you from becoming eligible again in the next fortnight or a future fortnight.
If this occurs, you won’t need to reapply, you just simply keep reporting your financials and your staff headcount to receive the payment again.
This will give business owners’ comfort that the payment will be available when they need it, however, it does mean that your reporting needs to be timely, and accurate. Records will need to be kept (particularly the comparison calculations you have used to determine your eligibility) because it is likely that payments will be audited down the track.
Support will decrease as vaccination rates rise
While JobSaver is specific to NSW, it has been funded 40% by the Federal Government which will be withdrawing its support as the state hits key vaccination targets.
The Federal Government has announced its intention to reduce it’s funding commitment to 30% once NSW hits 70% vaccination rates, which will, in turn, reduce the payments that businesses receive.
The payment will stop completely when the state reaches the 80% vaccination target — forecasts suggest this is likely to be around the end of October / early November 2021.
The State Government has pledged ongoing support packages for businesses who might still need financial aid if the effects of lockdown linger.
As of today, it has announced that JobSaver will remain in place until November 30, with payments tapering to 15% of payroll after we have hit the 80% vaccination milestone.
We will keep you up to date as time goes on.
What to do next
Impeccable record keeping, as we have said before, is key right now, along with preparing for re-opening. There is still a degree of uncertainty surrounding businesses as we move forward, so the most important focus right now is to stabilise your business.
Look closely at your finances and determine how your business will cope with reduced Government financial assistance. Put contingency plans in place. Negotiate where possible with landlords, suppliers, funders, creditors, etc to keep overheads low until you’re back on sure footing. Work out exactly what you need to put in place to meet the requirements for opening day, ‘freedom day, the 11th October.
It’s also critical to get professional advice about vaccinations for staff and customers, as well as Covid health and safety policies.
There is a lot to consider, so make sure you get the right advice.
If we can help, contact us.
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