Businesses forced to close due to the Sydney lockdown will be eligible for weekly payments.(ABC News: James Carmody
NSW’s COVID-19 lockdown will go for at least another four weeks, prompting the state and federal governments to announce more financial lifelines for businesses and individuals.
The new measures will cost about $750 million a week and are designed to keep people in Greater Sydney and its surrounds afloat in the midst of a crippling COVID-19 outbreak.
The changes affect the existing schemes of JobSaver, which is targeted at businesses, and the COVID-19 disaster payments, which is for individuals.
Here’s what you need to know.
What about individuals?
People in Greater Sydney and its surrounds who have had their work hours reduced because of the lockdown will also be in line to get additional payments.
Those who have lost more than 20 hours of work per week are already eligible for the federal government’s COVID-19 disaster payment, worth $600 per week.
That will be increased by $150 per week.
People who have lost less than 20 hours of work per week were eligible for $300 per week under the COVID-19 disaster payment.
This will be increased by $75 per week.
Prime Minister Scott Morrison said the process was now streamlined compared to the early days of the pandemic, which saw long lines at Centrelinks across the country.
“In this case, we just acted and got the payments to them, in some cases in half an hour of application,” he said.
Which businesses are eligible?
JobSaver, the program which provides weekly payments for businesses suffering amid the lockdown, will be expanded.
The threshold for eligible businesses will lift from those that have an annual turnover of $50 million, to $250 million.
NSW Treasurer Dominic Perrottet said this would double the number of eligible businesses to 460,000, and help around 3 million employees.
Businesses that turn over anywhere between $75,000 to $250 million per annum can apply for the payments.
Businesses that have seen their revenue drop by at least 30 per cent in the current lockdown compared to the same period in 2019, are eligible for JobSaver.
Mr Perrottet said a key part of the payment would be keeping staff.
“We have made it clear that businesses can’t reduce headcount. We want to make sure that workers remain connected to their businesses as we move through this lockdown period,” he said.
Financial support for businesses affected by the lockdown was first announced on June 29, and this program was later rebranded JobSaver.
The amount a business is eligible for is based on the size of its weekly payroll, and its annual turnover — basically, businesses with more staff will receive more money.
The payments can be as little as $1,500 a week, and had been capped at $10,000 per week.
However, today, it was announced that the cap would be increased to $100,000 per week.
The changes to JobSaver are backdated to the beginning of this week.
Sole traders who can prove their turnover has reduced by 30 per cent since 2019, will be eligible to receive a weekly $1,000 payment, backdated to July 18.
What about welfare recipients?
People who are already receiving Commonwealth income support, such as youth allowance or a carers payment, are entitled to claim the COVID-19 disaster payment.
From next week, they will get a top-up of $200 a week, on top of their existing benefits, if they have lost more than eight hours of work.
How long will it last?
The timeline for JobSaver is the next four weeks of Greater Sydney’s lockdown, but an extension has not been ruled out.
“We appreciate how difficult it is for businesses right now, and we are also prioritising getting money out the door and into pockets as fast as possible,” Mr Perrottet said.
While the payments will be helping keep the state afloat, it is not a long-term solution, according to the Prime Minister.
“I hope it is weeks,” he said.
“Restrictions cost the economy, it is true. But an outbreak getting out of control also costs the economy. So those are the difficult issues we have to weigh up and get right.”
Original Source: https://www.abc.net.au/news/2021-07-28/nsw-covid-financial-support-explained-including-jobsaver/100329924
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