Summer Holiday Stock Guarantee to compensate businesses for losses

Businesses will now be able to claim compensation for the loss of perishable stock as the NSW government announces a new ‘Summer Holiday Stock Guarantee for Small and Medium Enterprises (SMEs)’ grant.

Minister for Finance and Small Business Damien Tudehope said the Government wanted to ensure businesses could open with confidence and certainty without fear of lockdown induced stock losses.

What is the Summer Holiday Stock Guarantee?

Under the SME Summer Holiday Stock Guarantee, eligible businesses with an annual turnover between $75,000 and $50 million will be able to apply for a grant of up to $20,000 to compensate for loss of perishable stock, or claim $10,000 for reduced capacity to sell non-perishable items if a local lockdown occurs and they are impacted.

The state government has also announced an expansion of the Small Business Fees and Charges rebate which will be eligible for use until 30 June 2022.

“Small businesses will now be able to claim road user tolls under the Small Business Fees and Charges Rebate, which is being increased from $1500 to $2000, ” said Tudehop.

“The rebate can be used to offset NSW and local government fees and charges and adding tolls to the list of claimable charges is going to make a massive difference to many small business owners who use vehicles for work.”

Support measures key to reopening success

Premier Dominic Perrottet said these measures were key to giving businesses the confidence to open up and plan for the future, which will help reboot our economy.

“Now that we’ve reached the 70 per cent double vaccination target, it’s wonderful to see businesses reopening their doors and welcoming back customers,” Mr Perrottet said.

“These measures will give businesses and workers confidence to purchase stock and invest for the future knowing their doors will remain open as we get our economy firing again.”

How the stock guarantee will help

Treasurer Matt Kean said the Stock Guarantee of up to $20,000 would be available if non-essential SMEs were forced to shut their doors between 1 December 2021 to 31 January 2022 due to public health orders.

“It’s devastating for businesses and their employees when they have to shut due to COVID but the grants will make it easier for businesses to manage their stock with confidence,” Mr Kean said.

“We want businesses to have the confidence to get out and spend and invest in their business ahead of the busy Christmas trading period. We expect the summer will be a bumper time for businesses as the people of NSW emerge from lockdown and look to support their local, and we want business owners to know we have their back.”

Finance and Small Business Minister Damien Tudehope said the pandemic has not been an easy ride for small businesses and the grants will provide some assurances as businesses reopen.

More information on the rebate and Summer Holiday Stock Guarantee will be available soon.

Want more? Get the latest coronavirus news and updates straight to your inbox! Follow Kochie’s Business Builders on Facebook, Twitter, Instagram, and LinkedIn.

Now read this