The NSW government has announced a $1 billion support package for businesses hit by the economic impact of the Omicron wave as the Treasurer accused the federal government of "stepping aside".
The package, which targets businesses with a turnover of less than $50 million and a 40 per cent decline in turnover in January, also includes support with buying rapid antigen tests.
About $80 million will go to the hard-hit performing arts sector to underwrite ticket sales.
Applications open from mid-February and those eligible will be provided with a payment of 20 per cent of weekly payroll, up to $5,000 a week.
Treasurer Matt Kean acknowledged the past few months had been tough for small businesses but said the "comprehensive business package" would help them get "through to the other side".
He also expressed disappointment that financial assistance from federal Treasurer Josh Frydenberg and Prime Minister Scott Morrison was not forthcoming.
"I was hoping to make this announcement standing beside the Prime Minister today and the Treasurer [Josh] Frydenberg, but they're not to be found," he said.
"These are not just New South Wales businesses, they're Australian businesses, Australians that pay their taxes to the Commonwealth government.
"So what we want to see is rather than the Commonwealth government stepping aside we want to see the Commonwealth government stepping in."
He also said the cash would be directed to "those parts of the economy that are really struggling".
"Those businesses that ply their trade through face-to-face trading, things like hairdressers, nail salons, the tourist industry and also hospitality and bricks and mortar retail," Mr Kean said.
NSW Premier Dominic Perrottet said businesses were tracking "better than expected" during the Omicron wave and confidence was returning to the market.
"And as we did with earlier recoveries, we will come through this recent challenge stronger than ever," he said.
"We've got the backs of businesses, as we have throughout this entire pandemic."
The package includes topping up the Small Business Fees and Charges Rebate from the current $2,000 limit to $3,000.
The rebate will be expanded so it can also be used to subsidise the cost of rapid antigen tests by 50 per cent, but it will not be retrospective.
Wes Lambert, the chief executive of Restaurant and Catering Australia, welcomed the grants but shared the Treasurer's concern over the Commonwealth's lack of involvement.
"It's very important that we continue to advocate for additional funding from the federal government," Mr Lambert said.
"We would have liked them to have supported the New South Wales government in this support package … but we certainly thank the Treasurer and the Premier's office for releasing this package today."
Finance Minister Simon Birmingham hit back, saying the federal government had pumped $63 billion into NSW to help families and businesses through the pandemic.
He said the government also had other economic policies that delivered benefits to NSW, but welcomed states and territories pitching in.
"We welcome New South Wales doing their bit on top of the $63 billion that we've provided to New South Wales, and we encourage them to do that in the type of targeted ways we've seen," Mr Birmingham said.
"Just yesterday without any fuss, without any demands of the Commonwealth, Steven Marshall announced a business support package here in South Australia.
"He just got on with it. He did it. It's focused, it's targeted."
Opposition Leader Chris Minns praised the package but said it should have come sooner.
"It's late and it's not as much as many businesses hoped for, but it's much needed economic support in one of the toughest economic conditions many people have ever faced," he said.
"The government's approach up until now has been, 'Look, because we didn't put tough restrictions in place we don't want to provide economic support', but that really wasn't going to stand scrutiny because we were going to see many businesses hit the wall."
Commercial landlords who provide rent relief to tenants will now have until March 13 to access a hardship grant.
Other support announced includes an extension to the performing arts package to April 2022.
