Government Grant Question (Jobsaver / Disaster Payment etc)

mick123 on 05/08/2021 - 21:27
Last edited 05/08/2021 - 21:27

Hi guys, tried searching for this question but could not see another post about it, relating to this query.

Can anyone give any input regarding this situation.

NSW -

Small business - (company) pty ltd - not a sole trader.
One employee only (same person as the director) who is full time employed by the company and draws regular working wage.

I would say (and the accountant agrees) the above means the business is NOT a non-employing business. It is also not a sole trader.

Turnover is over $75K per year.
Due to the lockdown, my hours are down from 45 hrs/week to about 8 hrs/week (paperwork etc)

That being the case and if turnover is down 70+ %, the business -

  • can apply for one off $15K NSW govt grant (which the company has done)
  • can apply for jobsaver (which the company has done)

Now the confusing part is, can I, the employee, apply for the $600/$750 weekly Disaster payment.

The text from everything I have read does not say I cannot. I, as an employee fulfil the criteria.

My accountant believes I cannot.

Other accounting and law firms say you can

Whirlpool discussion if anyone else is in same boat:

https://forums.whirlpool.net.au/archive/9vw4wm10

Anyone here in the same boat or has further knowledge of it.

Apparently, when you call to ask Service NSW (after an hour wait) they cannot give a definitive answer.

TIA

Financial

Comments

  • Dumax on 05/08/2021 - 21:55
    +4

    COVID-19 Disaster Payment - Who can get it

    This includes all of these rules:
    * you're not getting the Pandemic Leave Disaster Payment, a state or territory pandemic payment or a state small business payment for the same period

    The NSW government grant covers the first 3 weeks of the lockdown, whilst JobSaver is ongoing and would therefore make you ineligible to receive the weekly disaster payment.

    • mick123 on 05/08/2021 - 22:18
      +2

      Yea, I read that. But the wording is not concise so I'm not sure if that relates to sole traders only.

      I am not the one getting a small business payment, the company is.
      The business and I are different entities.
      This is why it's confusing.
      And different people are coming to their own conclusions on this, from everything I've read.

      • Dumax on 05/08/2021 - 23:04
        +2

        Yes terribly worded - so there are certainly more/less generous ways of interpreting it. Ultimately it's best to check with Services Australia (federal government) as they'll be able to answer the question more accurately based on your circumstances.

        I'd be inclined to agree with your accountant, as I would find it difficult to believe that the business could receive the NSW grant/JobSaver - which (in part) is supposed to allow businesses to keep paying wages, yet also allow the employees to claim for lost wages from the Federal Government.

        • mick123 on 06/08/2021 - 10:25

          @Dumax - thanks. Think I will stick to my accountant's advice also.
          Thanks for the input!

      • eek on 05/08/2021 - 23:19

        Yes I'd say you would be able to double dip. I'm sure a lot of people will do it. Many have done so with the previous jobkeeper and business adaption grants and small business stimulation grants in QLD. Same idea. PTY LTD company receives all the grants yet the director (who also happens to be an employee of PTY LTD entity still gets jobkeeper. It was a sweet double-dip win win.

  • mbck on 05/08/2021 - 23:08
    +5

    Sounds like it's double dipping. You will probably get it when you apply, but if audited may run into issues.

    • jpl on 06/08/2021 - 09:09

      ^This

    • mick123 on 06/08/2021 - 10:27

      @mbck
      Thanks for the input! I think you're on the money here..

  • errorius on 06/08/2021 - 08:56

    My missus is in the same boat and our accountant said she can't double dip.

    • mick123 on 06/08/2021 - 10:29

      @errorious
      Thanks for the input! Agree it could be double dipping

  • Big Lenny on 06/08/2021 - 09:26
    -1

    stop trying to screw over the good honest aussie taxpayer

    • mick123 on 06/08/2021 - 09:48
      +3

      If I was trying to screw anyone over, I would just try to claim everything.

      I am specifically asking so I know that the rule is.

  • Sweet3st on 06/08/2021 - 20:41

    I’d go with the accountants advice unless you really need it. Having to deal with audit I wouldn’t enjoy. ServiceNSW have no idea what they’re doing. I applied for grant and they asked for ATO Notice of Assessment for proof of turnover… of course the NOA only shows taxable income.

  • Mrokire on 21/08/2021 - 19:51

    i got a full time job on my first one, and i got a contracting job as a cleaner on 2nd job and they reduce my hours and i lose 8 hours, can i still claim covid payment even if i i got a full time job?

    • Sweet3st on 22/08/2021 - 13:14

      I believe you can but would check with Centrelink if possible.

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