2021 Covid-19 Business Grant

2021 COVID-19 business grant is available for businesses that experienced reduced demand due to the public health order. The grant is to provide businesses across NSW with cash flow support for the first 3 weeks of the restrictions (26 June to 17 July 2021).

This grant is co-funded by the NSW and Federal Government to provide supports to small and medium business, similar to the cash flow boost released in 2020. Section 59-97 of the Income Tax Assessment Act 1997 provides that such a payment is non-assessable non-exempt income if it meets certain criteria, including that it was announced on or after 13 September 2020. What does this mean? It means it is a non-taxable payment and does not need to be included in your tax return and it does not eat out your tax losses. For further information, get in touch with us.

Small businesses could receive one of three payments depending on their size and operations.

According to the NSW Government, the payment amount you could receive is outlined as:

  • $15,000 for a 70 percent or more decline in turnover
  • $10,500 for a 50 to 69 percent decline in turnover
  • $7,500 for a 30 to 49 percent decline in turnover

The grant is intended to be used for paying utilities, wages and rent. The cost of perishable goods that can no longer be used and other activities to support the operation of the business. For businesses on the NSW border with Victoria impacted by stay-at-home restrictions that began on 27 May, a different time frame could apply. Any fortnight between 27 May to 17 July may be used to show a decline in turnover compared to the same minimum period in 2019.


To be eligible for the grant, you must:

  • have an active Australian Business Number (ABN)
  • demonstrate your business was operating in NSW as at 1 June 2021
  • have had total annual Australian wages of $10 million or less on 1 July 2020
  • have had an aggregated annual turnover between $75,000 and $250 million (inclusive) for the year ended 30 June 2020. (not 30 June 2019)
  • 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 (the end date was previously marked as 26 July and has since been updated by Service NSW) compared to:
    • the same period in 2019, or
    • the same period in 2020, or
    • the 2 weeks immediately prior to any restrictions of 12 June to 25 June 2021 (inclusive).
  • maintain your employee headcount as at 13 July 2021. See the guidelines for definitions.

Ineligible businesses

Non-employing businesses are not eligible to apply for this grant if individuals associated with and deriving income from the business received a Commonwealth COVID-19 Disaster Payment between 26 June and 17 July.

To discuss your eligibility of the various NSW Government Grants, get in touch today.