The 2022 Small Business Support Program will help businesses with cash flow, expenses and staffing costs.

To be eligible, your business must have a $75,000 to $50 million turnover and show evidence of a decline in turnover of 40% or more in January 2022. You’ll also need to have had a 40% or more decline in turnover from 1 to 14 February 2022.

Businesses with employees can receive 20% of weekly payroll as a lump sum for the month of February, with a minimum payment of $750 per week and a maximum payment of $5,000 per week. And sole traders or businesses without employees can receive $500 per week.

Eligibility

To be eligible for the 2022 Small Business Support Program, your business or not-for-profit organisation must:

• have an active Australian Business Number (ABN)
• have been operating in NSW on 1 January 2021
• have had an aggregated annual turnover between $75,000 and $50 million (inclusive) for the year ended 30 June 2021 or 30 June 2020
• have experienced a decline in turnover of 40% or more due to the impacts of COVID-19:
  – during January 2022, compared to January 2021 or January 2020
  – from 1 to 14 February 2022, compared to the same fortnight in February 2021 or February 2020
• for employing businesses, maintain your employee headcount from 30 January to 28 February 2022
• for non-employing businesses, such as sole traders, show that the business is the primary income source (50% or more of the total income) for the associated person. If you have more than one non-employing business, you can only claim payments for one business.

Alternative circumstances
If your business does not meet all the eligibility criteria, you may be able to apply for the 2022 Small Business Support Program if you can provide evidence to support the alternative circumstances outlined in the guidelines.

Application Process 

To apply for the 2022 Small Business Support Program, you’ll need to declare that you meet the eligibility criteria, and:

• submit your most recently lodged Australian income tax return, with tax file numbers redacted, demonstrating an aggregated annual turnover between $75,000 and $50 million (inclusive) for the year ended 30 June 2020 or 30 June 2021, or for registered charities, your ACNC Annual Information Statement
• provide evidence of how the weekly payroll amount was calculated, through:
  – your most recent BAS or IAS within the 2021–22 financial year,
  – your 2020-21 payroll tax reconcilation return, or
  – a copy of your business’s payroll report filed using Single Touch Payroll (STP).
• provide other supporting documents as outlined in section 6 of the guidelines, which may include:
  – letter of authority, if you are not listed as an associate on the Australian Business Register
  – a letter from your accountant, tax agent or BAS agent to verify your business’s 40% decline in turnover during the month of January 2022 (you may use our accountant’s letter template)
  – audited profit and loss statements
  – receipts and invoices from purchases
  – NSW payroll tax reconciliation returns
• identify how the public health order has directly impacted the turnover of the business.

If your business is not on the list of industries directly impacted by public health orders, you’ll also need to:

• submit evidence, such as Business Activity Statements, Instalment Activity Statements, or a letter from a qualified accountant, registered tax agent or registered BAS agent, to demonstrate a decline in turnover of 40% or more during January 2022, compared to January 2020 or January 2021.

Note: you do not have to provide evidence of your decline in turnover for the month of February 2022, but you must declare this decline in turnover when you submit your application.

Businesses submitting an Australian income tax return for the year ended 30 June 2020 as proof of aggregated annual turnover may be asked to provide additional proof that they operated in the 12 months prior to 31 January 2022. This may include:

• commercial rates notice
• lease agreements
• utility bills
• insurance papers.

If you are a non-employing accounting business (for example, sole trader) you must submit a letter from a qualified accountant, registered tax agent or registered BAS agent that is not an employee or director of your business, an associated entity of your business, or a director or employee of an associated entity of your business.

If you would like to discuss the program further please contact your accountant at SBP.

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