COVID Support and Advice
The Government has announced a range of economic support options for businesses
and sole-traders impacted by New Zealand moving to COVID-19 Alert Level 4 on 17 August 2021.
Like last time, the finer details of these, and the eligibility criteria, are emerging daily. Here’s what has been released so far.
Please also check out the MPGNZ Facebook page for up to the moment discussions
If your business cannot operate because of Alert Level 4 restrictions and you expect a 40% drop in revenue, you may be able to apply for the COVID-19 Wage Subsidy scheme to help keep paying your staff. You will need document and be prepared to prove that you have suffered this decrease.
Applications are open on a 2-week rolling basis. The August 2021 Wage Subsidy initially opened on Friday 20 August 2021 at 9am and closed 11:59pm Thursday 2nd September. The second round (August 2021 #2) opened at 9am Friday 3rd September and will be open for 2 weeks. Apply here: Work and Income - Wage Subsidy.
Resurgence Support Payment
If your business has experienced at least a 30% drop in revenue or a 30% decline in capital-raising ability over a 7-day period due to an increased COVID-19 alert level, you may be eligible to apply for the Resurgence Support Payment (RSP).
The COVID-19 Resurgence Support Payment helps to cover wages and fixed costs for businesses who have been directly affected when there is an increase to Alert Level 2 or higher for a week or more. Like the wage subsidy, you will need document and be prepared to prove that you have suffered this decrease.
Applications for the COVID-19 Resurgence Support Payment opened at 8am on 24 August 2021. Apply here at Inland Revenue - RSP.
Small Business Cashflow Loan Scheme
A one-off 5 year loan of up to $10,000 plus $1,800 per full time equivalent employee may be available to you.
Applications for Small Business Cashflow Loan Scheme are open now until 31 December 2023 through Inland Revenue - SBCS using your business myIR login. If your business does not have a myIR account, you will need to create one to apply.
The Leave Support Scheme
For eligible parties, the leave support scheme provides a two-week lump sum payment for workers who must self-isolate and cannot work from home. More information, criteria and how to apply available at Work and Income - Leave Support.
Short-Term Absence Payment
For eligible parties, the Short-Term Absence Payment provides a one-off (once per 30 days) payment for workers who must miss work due to a COVID-19 test and cannot work from home. More information, criteria and how to apply available at Work and Income - Short Term Absence.
When we are uncertain as to how long Level 4 will continue for, cashflow reserves need to be a priority. In some cases, payments such as GST or provisional tax may be able to be deferred with an appropriate arrangement.
As more information is released, we will let you know. Please get in touch with us if we can assist in any way.
We are here to help!