These notes are specifically for Churches and NFPs in NSW

Our previous updates were to about 25.8.2021
This update is to advise that applications to Benkorp closed on August 31st, as per previous updates

The NSW Government has announced two support packages, including the updates included in this update, for not-for-profit organisations, and churches, that have experienced a significant decline in turnover due to the Public Health Orders.

The support packages are:
1. Business Grant, and
2. JobSaver payments

Business Grant provides:

  • $7,500 if there is a minimum of 30% decline in turnover
  • $10,500 if there is a minimum of 50% decline in turnover 
  • $15,000 if there is a minimum of 70% decline in turnover 

 

The JobSaver payment provides:
40% of the weekly payroll, with:

  • a minimum payment of $1,500 per week, and
  • a maximum payment of $100,000 per week 

Overview of the process

If eligible, organisations will need to apply separately for each support package through Service NSW and provide evidence, including a letter from a qualified independent accounting or tax professional for each application

Applications for the Grant closes at 11:59 pm on 13 September 2021.
Applications for JobSaver closes at 11:59 pm on 18 October 2021. 

The Grant is designed to cover the first three weeks of the Greater Sydney lockdown (from 27 June to 17 July 2021).

JobSaver applies from week-4 of the lockdown (18 July 2021) onwards. 

The 2021 COVID-19 Business Grant & JobSaver payments are to provide cash flow support and help cover the organisations’ expenses for which no other government support is available. The intention of the Grant and JobSaver is to help organisations survive the lockdown so they can continue to support employment and the economy after restrictions are lifted. 

The details provided here apply to small & medium not for profit organisations and churches. This information does not cover all possible circumstances. Please refer to the details provided on the linked webpages below.

Click here for Benkorp’s offer of services to assist clients obtain the benefits

Criteria for applications

Ineligibility Grant
Some organisations are ineligible for the Grant support package. Click here for details. The organisation is ineligible if the organisation

    • primarily earns passive income (rents, interest, or dividends), ie income from rent, interest and dividends is more than 50% of total income

Ineligibility JobSaver
Some organisations are ineligible for the JobSaver support package. Click here for details. The organisation is ineligible if the organisation:

    • primarily earns passive income (rents, interest, or dividends), ie income from rent, interest and dividends is more than 50% of total income
    • does not have any employees

These especially apply for our main clients (NFPs & churches).

 

Eligibility for the Grant

To be eligible to apply for the grant payments, the organisation must satisfy all criteria:

    • Have an active ABN
    • have been operating in NSW on 1 June 2021, 
    • have total annual wages less than $10m,
    • have annual turnover between $75k and $250m, and
    • have business costs for which there is no other government support available
    • have experienced a decline in turnover of 30% or more due to the public health order over a minimum 2-week period from 26 June 2021 to 17 July 2021 compared to:
      • the same period in 2019, or
      • the same period in 2020, or
      • the 2-week period immediately before the Greater Sydney lockdown began (12 June to 25 June 2021)
    • maintain their employee headcount as of 13 July 2021 for the period for which the organisation is receiving grant payments. 

Eligibility for JobSaver

To be eligible to apply for JobSaver payments, the organisation must satisfy all criteria:

    • Have an active ABN
    • have been operating in NSW on 1 June 2021, 
    • have total annual wages less than $10m,
    • have annual turnover between $75k and $250m inclusive for the year ended 30 June 2020, and
    • have experienced a decline in turnover of 30% or more due to the public health order over a minimum 2-week period within the Greater Sydney lockdown (began 26 June and due to end 28 August 2021) compared to:
      • the same period in 2019, or
      • the same period in 2020, or
      • the 2-week period immediately before lockdown began (12 June to 25 June 2021)
    • for employing businesses, maintain your employee headcount from 13 July 2021 while you continue to receive JobSaver payments

The Public Health Order restrictions must be the reason for the decline in turnover. An organisation should not apply for the Grant and/or JobSaver payments if it has experienced a decline in turnover for some other reason. 

Turnover
“Turnover’ is determined on the same basis as was used for the JobKeeper scheme last year 2020, i.e. GST turnover. 

GST Turnover includes:

    • offerings and donations
    • property income from commercial leases and licences
    • other taxable or GST-free supplies such as certain ministry events and activities and grants from both Diocesan, Head Office organisations and government

This does not include:

    • Interest 
    • Trust fund distributions
    • Residential lease income 

Maintaining Employee headcount
‘Maintaining employee headcount’ means maintaining the number of persons who are employed either permanent (full-time or part-time) or casual for more than 12 months. An organisation will remain eligible if employees voluntarily resign. 

The headcount does not include clergy who are not employees.
Eligible businesses and not-for-profit organisations that do not have any employees may receive $1,000 per week. 

Declarations & Evidences required to support eligibility
Applicants must:

    • declare they have eligible business/organisation expenses for which no other government support is available,
    • declare their employee headcount at 13 July 2021, and that they will maintain that headcount for the period for which the organisation is receiving payments
    • a copy of the organisation’s audited annual financial statements for the year ended 31 December 2020 (as presented to the AGM in Feb-Mar 2021) to demonstrate the organisation had an aggregated annual turnover of between $75,000 and $250 million (inclusive) for the year ended 30 June 2020,
    • For the Grant – Submit evidence that they experienced the required decline in turnover due to the Public Health order over a minimum 2-week period as per the eligibility criteria (see below for evidence required), 
    • For JobSaver – Submit evidence that they experienced the required decline in turnover due to the Public Health Order over a minimum 2-week period as per the eligibility criteria (see below for evidence required), 
    • For JobSaver – applicants will need to submit Headcount and Weekly Payroll information, and
    • submit other supporting documents as required to demonstrate that they meet the eligibility criteria including the recent IAS/BAS

 


Evidence proof supporting the applications

Evidence required to show decline in turnover MAY NEED* to be from one of the following Independent Practitioners, on their prescribed form letter: 

– qualified accountant as defined in the Corporations Act 2001,
registered tax agent as defined under the Tax Agent Services Act 2009, or 

– registered BAS agent as defined under the Tax Services Act 2009. 

*Religious services have been classified as a “highly impacted industry” and therefore may not need to submit a statement from an Independent Practitioner. 

– For Grants see: https://www.service.nsw.gov.au/2021-covid-19-business-grant-guidelines#attachment-a-highly-impacted-industries-list

– For JobSaver see: https://www.service.nsw.gov.au/jobsaver-payment-guidelines#attachment-a-jobsaver-highly-impacted-industries-list

*LATE NEWS 20.8.2021

The requirement for these letters to be submitted by churches is not clear, as mentioned in various opinions from denominational offices and accountants’ press comments. 

In any case the letter or similar statements would be required in case of possible audit of your submissions by ServiceNSW.

Therefore we recommend that you consider this information and your denominational head office’s recommendations to help you decide to request the letters from the accountant/BAS Agent.

    JobSaver weekly payroll

    Organisations applying for the JobSaver support must provide evidence of weekly payroll

    The required evidence is the most recent Business Activity Statement (BAS) with a W1 amount (wages and salaries) submitted to the ATO prior to 26 June 2021 within the 2020-21 financial year. 

    Benkorp also recommends that the following calculation is also provided:

    The weekly payroll amount is calculated as:

      • Quarterly BAS – W1 from the January-March 2021 BAS. or
      • Monthly BAS – W1 from the May 2021 BAS
      • less any amounts withheld on behalf of contractors, and 
      • less any amounts relating to clergy who are not common law employees (see note* below) 

    Note: This amount is divided by the number of days in the BAS period and multiplied by 7, to calculate the JobSaver weekly payroll.


    Applications

    Preparing to apply:

      • To apply, your organisation/church will need a MyServiceNSW Account, and the person submitting the application will need proof of identity. 
      • The person submitting the application must also be an authorised contact person for the organisation.
      • Have your documentation and evidence ready for uploading.
      • Note: You cannot save and resume your application once you’ve started.

    Making your applications:

    You must have your documentation and evidences prepared and ready to upload as required: 

    1.the evidences, and
    2. both letters:
            a. 2021 COVID-19 Business Grant Accountants Letter

            b. 2021 COVID-19 JobSaver Payment Accountants Letter

    For further information, refer to:

     

    Click here for Benkorp’s services to assist our clients obtain the benefits