Servicing Greater Sydney, Parramatta

COVID-19 LOCKDOWN SUPPORT:  Reconfirmation process for JobSaver & the Micro-business Grant 

Service NSW have now confirmed and provided detail around their plan to require fortnightly reconfirmation/eligibility testing by businesses seeking to continue to receive JobSaver and Micro-business grant payments. The reconfirmation process will first apply to turnover generated in fortnights beginning on or from 13th September. Businesses that fail to qualify for continuing grant payments in one fortnight may re-test and become re-eligible for payments in future fortnights.

What needs to be confirmed?

Each fortnight, your business will need to reconfirm that it:

  • Continues to experience a decline in turnover of 30% or more; and
  • Has maintained employee headcount stated in the original grant application. Note that if your headcount changes, you are obliged to notify ServiceNSW.

Measuring decline in turnover

There are two main approaches to validate your decline in turnover depending on whether the business has traded during the relevant fortnight:

If your business was not trading during the relevant fortnight
There is no requirement to perform a decline in turnover calculation. You can simply select 'yes' on the confirmation screen to indicate that your business has continued to experience a decline in turnover of at least 30%.

If your business was trading during the relevant fortnight
You will need to determine if your business continues to meet the 30% or more decline in turnover eligibility criteria. There are three potential methods you can use but whichever method you use, you will need to use the same method for each subsequent fortnight.

Method 1 – 2019 or 2020 comparison period using testing period fortnight
If your initial comparison period was in 2019 or 2020, then you can use the same year but adjust the comparison period to match the current fortnight being tested.

For example, if you initially compared the period of 26 July to 8 August 2021 to 26 July to 8 August 2019, and you are now reconfirming your eligibility for the period of 13 September to 26 September 2021, then your comparison period is 13 September to 26 September 2019.

  Test period Comparison period
Application 26 July - 8 Aug 2021 26 July - 8 Aug 2019
Retesting 13 Sept - 26 Sept 2021 13 Sept - 26 Sept 2019

 
You cannot use 13 September to 26 September 2020 as your comparison period in this example.

Method 2 – 2019 or 2020 comparison period using original testing period
If the initial comparison period was in 2019 or 2020, then you can use the same year and comparison period that you used in your original application.

For example, if you initially compared the period of 26 July to 8 August 2021 to 26 July to 8 August 2019, and you are now reconfirming your eligibility for the period of 13 September to 26 September 2021, then your comparison period remains 26 July to 8 August 2019. This comparison period will remain fixed for all future periods.

  Test period Comparison period
Application 26 July - 8 Aug 2021 26 July - 8 Aug 2019
Retesting 13 Sept - 26 Sept 2021 26 July - 8 Aug 2019

Method 3 - 12 June to 25 June 2021 comparison period

If 12 June to 25 June 2021 was used as your initial comparison period, then you must use the same period as your initial application when reconfirming eligibility.

For example, if you initially compared the period of 26 July to 8 August 2021 to 12 June to 25 June 2021, and you are now reconfirming your eligibility for the period of 13 September to 26 September 2021, then your comparison period remains 12 June to 25 June 2021. This comparison period will remain fixed for all future periods.

  Test period Comparison period
Application 26 July - 8 Aug 2021 12 June - 25 June 2021
Retesting 13 Sept - 26 Sept 2021 12 June - 25 June 2021

No further documentation required
ServiceNSW states that you will not need to provide any additional evidence or attach any documentation when reconfirming your eligibility. However, it is essential that you maintain adequate records to show evidence of your eligibility in the event of an audit.

Comparison period FAQs

I had a three week comparison period. How do I do the comparison?
If the comparison period used in your initial application was more than 2 weeks (for example, a 3 week period), the turnover amount for the comparison period must be converted to a fortnightly amount for comparison purposes to the current turnover by dividing by the number of days in the period and multiplying by 14.

What happens if the business is ineligible one fortnight but eligible the next?
The reconfirmation only tests the relevant fortnight. Becoming ineligible for one fortnight does not disqualify your business from becoming eligible again in a future. Some businesses may be eligible one fortnight and not eligible the next if their decline in turnover decreases again.

Can I delay confirming eligibility?
Yes, but your business will not receive payment until confirmation of eligibility has been received. Some businesses might prefer to wait until month-end accounting records are finalised to confirm eligibility. ServiceNSW states that payments will be made within 5 days of your business reconfirming its eligibility.

Reconfirming headcount

Your employee headcount was noted on your original application. This was the number of people you employed in NSW including full time, part time and long-term casuals that had been employed by the business for more than 12 months at the time of the application.

JobSaver requires your business to maintain this same headcount to qualify to receive payments unless the employee is no longer employed due to circumstances outside of your control, such as resignation, death or where you have fairly terminated the employee because of misconduct.

If your full time, part time or long-term casual employees, have been stood down, they are still included in the headcount. During a stand down the employment relationship remains (their role has not been terminated), the employee is not paid (unless they are taking paid leave), and they continue to accrue annual leave. See the FairWork website to clarify how and when an employer can stand down employees and the documentation requirements.

Payment amounts

JobSaver
40% of the weekly payroll for work performed in NSW:

  Per week
Non-employing entity $1,000
Minimum $1,500
Maximum $100,000

 

For large tourism, hospitality and recreation businesses:

Aggregated annual turnover  Per Week*
More than $250m to $500m $300k
More than $500m to $1bn $500k

*maximum per week

Micro-business Grant

Payments of $1,500 per fortnight are made to those eligible for the Micro-business Grant.

How to reconfirm your eligibility

You can reconfirm the eligibility of your business for JobSaver or the Micro-business Grant by logging into your ServiceNSW business profile.

You should also receive reminders from ServiceNSW to confirm the eligibility of your business. For security, it is best to go straight to your business profiles rather than clicking on any email links.

What do I do if I no longer need assistance?

Log into your ServiceNSW business profile and request a withdrawal.

As usual, please do not hesitate to call us on (02) 9891 6100 should you wish to discuss how any of the points raised in the report specifically affect you, or click here to send us an email.

Warm regards,

Anthony

Anthony Saccaro, Director
Spry Roughley Services Pty Limited


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