Business NSW (formerly NSW Chamber of Commerce) has welcomed a state government initiative designed to support businesses impacted by the current COVID restrictions.

Earlier today, the NSW government announced a major new grants package for small businesses, payroll and tax deferrals for employers and changes to the statewide Dine and Discover program.

NSW Premier Gladys Berejiklian said the centrepiece of the package was the small business support grants - which provide either $5000, $7000 or $10,000, depending the loss of income - which would help them while their cashflow was restricted.

"We always said we will do whatever it takes to support businesses and keep people in jobs during the pandemic and that is exactly what we are doing," Ms Berejiklian said.

"The current restrictions are in place to protect people and keep the community safe, unfortunately businesses continue to incur costs such as rent, power and lost produce, and this will go some way to lessening that financial pain."

The grants are split into two streams. The first is for small businesses of 20 or fewer employees, including sole-traders with an annual turnover of more than $75,000 but below the NSW Government 2020-21 payroll tax threshold of $1,200,000 as at 1 July 2020.

A tourism or hospitality related business can also claim the grants if its annual turnover is more than $75,000 but less than $10 million each year.

Also included is an extension of the government's Dine and Discover program to Tuesday 31 August and the ability for people to use Dine and Discover vouchers for takeaway delivered directly to their home by the venue.

The government support for small businesses has been welcomed by state-wide business organisation Business NSW.

Business NSW Regional Manager – Western NSW, Vicki Seccombe said the organisation worked together with the government to show the urgency of such a package when the lockdown was first announced.

“Whilst the Western NSW community is not in lockdown, the flow on affect to our businesses has been felt strongly and rapidly with cancellations, reduced capacities, income loss and a drop in business confidence," Ms Seccombe said.

"This will be one of the fastest and largest business support packages from any state in Australia in response to the pandemic.

“This will provide enormous relief to business owners who’ve suffered so much over the past 15 months and were slowly starting to bounce back. This latest development has been a hammer blow to them and their confidence, but at least they know some support is on its way."

Ms Seccombe also praised the government's announcement that payment dates on a number of state government taxes and charges had been deferred to later in the year as well as their adjustments to Dine and Discover

According to the government, businesses will be able to apply for the grants through Service NSW from later in July.

They will need to show a decline in turnover across a minimum two-week period after the commencement of major restrictions on Saturday June 26.

More information on the small business support grants and changes to the Dine & Discover program will be available shortly on the Service NSW website.