The NSW Government has recently announced that small businesses will benefit from a new $45 million grant program designed to cushion the economic impacts of the southern border closure. 
 
Businesses in 13 Local Government Areas along the NSW and Victorian border will be able to apply for $5,000 and $10,000 grants through Service NSW from Tuesday 8 September. 
 
The first tier of $5,000 is for employing and non-employing small businesses, such as non-employing sole traders, that have suffered at least a 30 per cent decline in turnover as a result of the border closure. 
 
The second tier of $10,000 is for employing small businesses that have suffered at least a 75 per cent decline as a result of the closure.
  
The grants will be available from Tuesday 8 September for six weeks until Sunday 18 October 2020 and small business owners can apply via the Service NSW website. 

Eligibility

Local Government Areas:

• Albury
• Balranald
• Berrigan
• Bega Valley
• Edward River
• Federation
• Greater Hume Shire 
• Hay
• Murray River
• Murrumbidgee
• Snowy Monaro
• Snowy Valleys
• Wentworth

Tier 1: $5,000 grant eligibility:

• Non-employing businesses or businesses that employ less than 20 full-time equivalent (FTE) staff
• Have an Australian Business Number (ABN) as at 1 March 2020 registered in an eligible Local Government Area (LGA)
• Have experienced a decline in turnover of at least 30 per cent since 8 July 2020 compared to a period of at least two weeks between 30 March 2020 – 7 July 2020 inclusive
• Have total Australian wages below the NSW Government 2019-20 payroll tax threshold of $900,000 as at 1 March 2020
• Have an annual turnover of more than $75,000 as at 1 March 2020
• Have costs from 8 July 2020 associated with surviving or adapting to the new business environment, for which there is no other government support available.

Tier 2: $10,000 grant eligibility:

• Meet all the eligibility criteria for the $5,000 (tier one) grant, except they must:

1. Be an employing small business with less than 20 FTE staff, but more than the minimum employment requirement of 0.5 FTE staff.
2. Have experienced a decline in turnover of at least 75 per cent since 8 July 2020 compared to a period of at least two weeks between 30 March 2020 – 7 July 2020 inclusive. Applicants must submit evidence to show they have experienced a decline in turnover of at least 75 per cent.

The Southern Border Small Business Support Grant can only be used for eligible expenses incurred following the introduction of the NSW and Victoria border permit scheme on 8 July 2020. 
 
The Grant must only be used for expenses for which no other government support is available. For example, this grant cannot be used to pay wages for staff eligible for JobKeeper. 

Grant use

The Southern Border Small Business Support Grant will provide eligible small businesses and not-for-profits with support to help meet the costs of surviving or adapting to new business conditions that arise from the New South Wales and Victoria border closure.
Examples of eligible costs to help cushion small business impacts due the New South Wales and Victoria border closure include, but are not limited to:

• meeting unavoidable operating expenses, including utilities, salaries and rent
• seeking financial, legal or other advice to support business continuity planning
• developing the business through marketing and communications activities
• other supporting activities relating to the operation of the business.

Examples of eligible cost to help businesses adapt to the New South Wales and Victoria border closure include:

• digital solutions (e.g. e-commerce, business websites, online sales platform)
• seeking professional advice on strategies to reach more customers
• human capital (e.g. digital skills, export training and consulting)
• permanent physical improvements (e.g. to improve efficiencies or customer experience)
• diversification of markets and supply chains. 

We at MGR are here to provide you with professional advice and assistance relating to all COVID-19 economic measures and stimulus support. Our expert team of accountants can help guide you through this process so you are confident you are doing everything right for your business and employees.
 
Call us today on (03) 5443 8888 or email us at mgr@mgr.com.au