NSW government to ‘go it alone’ to fund JobSaver extension

After it was previously announced that funding would cease once the state hit an 80 per cent vaccination rate, NSW Premier Gladys Berejiklian has announced the state government will “go it alone” and continue funding through November.

Once the joint Commonwealth and NSW payments cease on 31 October, the state government will continue to fund its 50 per cent contribution which will see payments drop from 30 to 15 per cent.

JobSaver payments will end on 30 November to coincide with the relaxation of restrictions across the state.

“The continuation of JobSaver over the next two months will give businesses across NSW the financial boost they need to get them through the challenge of reopening their doors,” Ms Berejiklian said. “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 relaunch.”

NSW Treasurer Dominic Perrottet added that the state is now in a position to start planning for the future to get the economy “firing again”.

“I know businesses across the state are keen to open their doors and are busy planning now that our roadmap is out. There’s renewed optimism in NSW,” Mr Perrottet said.

“We are sticking by businesses and giving them the support they need to get back on the road to prosperity, with the state only a few weeks away from reopening.”

From 10 to 23 October, the minimum and maximum payments for businesses will be reduced by 25 per cent to $1,125.

Grants for sole traders will also be reduced to $750.

The NSW government is expected to announce its economic recovery plan in early October.

Meanwhile, the Commonwealth and Victorian governments have announced a joint funding package of up to $2.27 billion for small to medium businesses over the next six weeks. 

Around 124,000 businesses will receive automatic business costs assistance program grants which range from $1,000 to $8,400 per week  until the end of October.

Any business that remains closed or is “severely restricted” in the first two weeks of November will also receive automatic payments.

The Commonwealth government has also announced another joint package with the ACT government which will continue until mid-October.

It was announced on Thursday that an additional $10,000 for all employing businesses and $3,750 for non-employing businesses will be available to all businesses who were eligible for the COVID-19 business support grant in sectors that have been impacted by the restrictions.

Neil Griffiths

Neil is the Deputy Editor of the wealth titles, including ifa and InvestorDaily.

Neil is also the host of the ifa show podcast.