NSW to extend COVID-19 support after federal government pulls out

By Tom Rabe September 30, 2021 â€" 2.29pm

NSW will extend its financial support to businesses hit by COVID-19 until the end of November at a cost of about $500 million despite the federal government pulling the pin on its contributions next month.

Treasurer Dominic Perrottet on Thursday confirmed his state would go it alone with JobSaver payments as the federal government prepares to withdraw its support once 80 per cent of NSW is fully vaccinated.

NSW Premier Gladys Berejiklian and Treasurer Dominic Perrottet on Thursday.Credit:Kate Geraghty

NSW will continue to bankroll its 50 per cent share of the program until November 30, with the payments halving from 30 per cent to 15 per cent of weekly payroll once the state hits 80 per cent vaccination.

Mr Perrottet said many businesses would no longer need to access the program once the state began reopening on October 11 after reaching its first vaccination threshold, but ongoing restrictions meant others would continue to need support.

“We know that when we do open up at 70 per cent and 80 per cent, there will be still some restrictions in place, that businesses will not be operating at full capacity so by maintaining the NSW government’s contribution to this program, it will allow many businesses the support they need as we move from response to recovery,” Mr Perrottet said.

Businesses will have to prove to Service NSW every fortnight they are still eligible for the payments through most of October and all of November.

Asked whether he was disappointed in the federal government for cutting off its contributions to NSW in October, Mr Perrottet said his priority was keeping businesses afloat.

“I appreciate the support they’ve provided for our state, but ultimately, as a state government, our number one priority is to keep our people safe,” he said.

“We have restrictions in place. It’s been a very difficult time and the decision that the Premier and myself and our crisis cabinet made yesterday is to keep our support going.”

Mr Perrottet earlier this month revealed to the Herald the Delta outbreak had cost the state $11 billion, with the budget deficit now forecast at $19 billion.

He said on Thursday the state’s metric for success would not be based on its budget position going forward, and rather the number of people it kept in work during the pandemic.

NSW Premier Gladys Berejiklian said the state planned on outlining its full economic recovery plan in early October.

“The light at the end of the tunnel is so close, and this support will help see businesses and workers out to the other side and prepare them for re-launch,” she said.

Federal Treasurer Josh Frydenberg said on Wednesday it was up to the states to decide whether additional targeted business support is needed as a result of any health restrictions.

NSW businesses receive 40 per cent of their weekly payroll from the JobSaver program, with a weekly payment range of between $1500 to $100,000.

That will be cut to 30 per cent ($1125 - $750,000) on October 10 once NSW reaches the 70 per cent vaccine target that triggers reopening.

At 80 per cent full vaccination when the federal government withdraws, payments will be cut to 15 per cent of a business’ weekly range ($562 - $37,000). By the end of November, NSW will have spent $8 billion in COVID support to businesses.

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