Service NSW has provided a range of Financial Support resources for all Businesses impacted by the COVID lockdown restrictions. The most notable payments include the NSW Business Grant and the JobSaver Payment Scheme. If you would like to know more about the eligibility criteria of these payments we have a number of resources available through the Blog Section on our Website.

If you believe your Business has met the relevant eligibility criteria you can apply for both the NSW Business Grant and the JobSaver Payment Scheme directly through the Service NSW website. Make sure first you set a MyServiceNSW Business Account. The links included in this Knowledge Article will take you to the User Guides on how to complete these applications.

Assess the GST Decline in Turnover

One of the pivotal eligibility criteria in all the NSW COVID Support measures is to prove that your Business has been financially impacted by the Lockdown rules. The NSW Government has introduced the same eligibility criteria used as the Federal Government last year when dealing with the JobKeeper scheme. NSW based Businesses must prove they have experienced a set percentage of GST Decline in turnover by comparing a 14-day period during the 2021 lockdown against a 14-day period in either 2019, 2020 or the two week period immediately prior to the lockdown (depending on the application and business-specific circumstances).

Furthermore, from 10 September 2021, Businesses who have been receiving the JobSaver fortnightly payments will need to reconfirm they still meet the eligibility criteria each fortnight to continue to receive ongoing support payments. This confirmation is lodged through the Service NSW Website.

To help Busineses assess their GST decline in turnover, Xero launched a COVID-19 Support tool available within the software. This tool will help you to quickly assess if your Business meets the required GST decline in turnover to either apply for COVID-19 Support Payments or to continue receiving JobSaver payments.

In Xero go to Accounting > Reports
Under the Tax Heading click on the Report: COVID-19 Business Support

è The COVID-19 business support report
Select the COVID-19 business support option and click on [Continue]

è The Turnover calculator opens
Select the dates in both the Impacted Period and Compared Period
Note: Xero will force you to select a minimum of 14 days
Select your GST Reporting method (Cash or Accruals)
Note: this must be the same reporting method used for your Activity Statements

è The Turnover calculator calculates your decline in turnover percentage
You can also export the calculator results to PDF or Excel

Record the Grant Payments

Once Service NSW has reviewed and approved your application you will first receive an email notification that your payment has been initiated. The payment is generally transferred into your bank account within 2 working days.

è Service NSW Email Notification

As the Government has deemed these payments exempt from both GST and Income Tax, you will then need to create new 'Other Income' accounts, one for the Business Grant and a second for the JobSaver payment scheme.

Once the deposits appear on the Bank Feeds you will need to reconcile them against the relevant Income Account(s).

Create the Grant/Jobsaver Other Income Accounts

Go to Accounting > Chart of accounts
Click on [Add Account]

è The Add New Account screen
Select/Enter the following details:
- Account Type > Select: Other Income
- Code > Enter a 3-digit code starting with 29
- Name > Type: Govt Subsidies - COVID-19 - Business Grant (or JobSaver)
- Tax > Select: BAS Excluded
Click on [Save]

Record the NSW Grant Payment

Once the Grant payment appears on the Bank Feeds you can reconcile it as a simple Receive Money transaction.

Go to the Bank Account Bank Feed Transactions
Find the Grant Payment and click on the [Create] Tab

è The Bank Feed Transaction
Select/Enter the following details:
- Who > Select/Create: Service NSW
- What > Select: Govt Subsidies - COVID-19 - Business Grant
- Why > Type: NSW Grant payment
Click on [OK]

Record the JobSaver Payments

As the JobSaver pays fortnightly, the best approach to reconcile these payments is by setting a Bank Feed Rule to automatically pick up future payments.

From the Bank Feed transaction click on Options > Create bank rule

è The Bank Feed Rules screen
Select/enter the following details:
- Step 1 > When money received on the bank statement match All the following conditions > Select the following options:
  - Bank Feed Field > Select: Any text field
  - Condition > Select: Contains
  - Keyword > Type: JSP
- Step 2 > Set the Contact > Select/Create Service NSW
- Step 4 > When the remainder, allocate items to the following ratios > Select/Enter the following details:
  - Description > Type: Jobsaver payment
  - Account > Select: 29# - Govt Subsidies - COVID-19 - Jobsaver
  - Tax Rate > Select/Confirm: Bas Excluded
  - Percentage > Confirm 100.00%
- Step 6 > Target a bank account > Confirm the bank account where the Jobsaver payments will be deposited to
- Step 7 > Give the rule a title > Type: JobSaver Fortnightly payments
Click on [Save]

è The rule will automatically apply to all future Jobsaver payment transactions
Click on [OK] to confirm the match

Record Accounting Fees & Charges

As the NSW COVID Support payments have been deemed by the Australian Government as non-assessable non-exempt (NANE) income treatment, the ATO has also deemed any expenditure related to the preparation and application of these payments non-assessable non-exempt (NANE). Therefore, any Accounting fees and charges issued by your Registered Practitioner for the assessment of the Business eligibility criteria to the Grant, or for issuing the letter of evidence must be coded as non-deductible expenses.

è Your Accounting bill related to the professional services provided for the NSW COVID support payments