The NSW state government has announced support will continue for struggling small business owners as the state moves towards reopening. However, some government payments will taper as the state reaches vaccination milestones.
JobSaver payments to taper when vax targets hit
When the state’s vaccination rate reaches 70 per cent of the eligible population, JobSaver payments will taper from the current payment rate equivalent to 40 per cent of weekly payroll to 30 per cent of weekly payroll. This is anticipated to occur by 10 October.
From 10 October to 23 October, the minimum and maximum weekly payments for employing businesses will be reduced by 25 per cent to $1,125 and $75,000 weekly and grants to be 30 per cent of weekly payroll.
The grant for sole traders will reduce to $750.
Changes at 80 per cent double vaxxed
Once New South Wales reaches a vaccination rate of 80 per cent, the Commonwealth’s contribution to the JobSaver program will cease, in line with the National Plan for Reopening. This is expected to occur by 31 October.
The Federal Treasurer Josh Frydenberg said when the state hits 80 per cent vaccination rates it will be up to the NSW government to provide any additional support.
“We can’t eliminate the virus, we need to learn to live with it in a COVID-safe way. Our economy has bounced back strongly before once restrictions are eased and is well-positioned to do so again when lockdowns lift,” Frydenberg said.
NSW state government to continue with their JobSaver support
The NSW Treasurer Dominic Perrottet said the New South Wales government’s roadmap has laid out a clear plan for getting back to life as we know it and that includes continuing to support JobSaver once Commonwealth funding ceases.
As such Perrottet said the state government will go it alone to fund an extension of the JobSaver program to make sure NSW businesses re-open their doors and get people back into jobs as the State starts to ease restrictions.
How NSW JobSaver payments will work
When NSW reaches the 80 per cent double vaccination rate, the joint Commonwealth and NSW Government JobSaver payments will cease and the Commonwealth will end its contributions.
At that time, the NSW Government will continue to fund its 50 per cent contribution to JobSaver payments.
From this point, JobSaver payments will be tapered from 30 per cent to 15 per cent of weekly payroll.
JobSaver payments will then end on 30 November, coinciding with the further relaxation of restrictions.
Continued support will add business certainty
Premier Gladys Berejiklian said the extension of JobSaver would work alongside the NSW Government’s Roadmap and the easing of restrictions, giving businesses certainty.
“The continuation of JobSaver over the next two months will give businesses across NSW the financial boost they need to get them through the challenge of re-opening their doors,” Berejiklian said.
“The light at the end of the tunnel is so close, and this support will help see businesses and workers out to the other side and prepare them for re-launch.”
By 30 November, the NSW Government is expected to have provided over $8 billion in direct support to businesses and individuals, including through the JobSaver program and its contribution to Commonwealth Disaster Payments.
Treasurer Dominic Perrottet said pivoting JobSaver from support to recovery would put businesses on the front-foot as restrictions are eased and the economy is restarted.
“JobSaver has helped businesses weather the storm of the latest outbreak and now is the right time to plan for the future so we can get our economy firing again,” Perrottet said.
“I know business across the State are keen to open their doors, and are busy planning now that our Roadmap is out. There’s renewed optimism in NSW.
“We are sticking by businesses and giving them the support they need to get back on the road to prosperity with the State only a few weeks away from re-opening.
After NSW reaches the 80 per cent double vaccination target the Micro-business grant will continue to be available at a rate of $750 a fortnight, before ceasing on 30 November.
“Ultimately this will help give businesses the confidence to open up. Sydney and NSW will bounce back, we’ve done it before, and we will do it again.
“We will announce our comprehensive economic recovery plan in October and have more to say later today about support for NSW businesses as we transition to a brighter summer.”
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