*Note* this article relates to Covid-19 Support packages which were available in August 2021. Check out this article for packages available in September 2021.
The government have triggered business support packages in response to the country moving to Alert level 4 as of midnight. Based on the information currently available, the following support will be available:
Wage Subsidy Scheme
Eligibility:
- 40% loss of revenue as a result of the alert level increase
- Available across the country
The Wage Subsidy Scheme rates have been increased to reflect the increase in wage costs since the scheme was first used in March 2020:
- $600 per week per full-time equivalent employee, and $359 per week per part-time employee
- Two-week lump sum
Applications open on Friday 20 August through Work and Income with the first payments usually available after three days. More information will be available on the MSD website soon.
Resurgence Support Payment
Eligibility:
- 30% loss of revenue in a seven day period as a result of the alert level increase.
- Must have been in business at least 6 months
- Must have a NZBN New Zealand Business Number (apply now)
The maximum payment your business may be eligible for is based on the total number of full time employees you have.
- $1500 lump sum payment + $400 per full time employee (up to a maximum 50 employees)
Businesses with low revenue will have their payment capped at 4 times the amount of revenue lost over the 7 day period. For example, if your lost revenue is $500 over 7 days but you have 3 FTE’s your payment will be capped at $2,000.
Applications open 24 August. More information will be available through Inland Revenue here
Update: An announcement has been made to change the eligibility criteria to include businesses that have been in operation for at least one month prior to the alert level increase on 17 August. This change applies to the current round of RSP and any future ones. Newly eligible businesses will need to wait until 8am on 9 September when the change becomes active on Inland Revenue’s website to apply.
Leave Support Scheme
Two week lump sum payment for employees or self employed people who are required to self-isolate and cannot work from home.
This cannot be received at the same time as the Wage Subsidy or Short Term Absence Payment. Applications open 24 August.
Short Term Absence Payment
One-off payment for an employee or self employed person who cannot work from home while awaiting their COVID-19 test results. The payment is $350 and is available once in a 30 day period for each eligible employee or self employed person. Applications open 24 August
If you are using an online software package, such as Xero or MYOB, it is very easy to review your profit and loss report to review your downturn in revenue over this time.
Covid-19 Business Helpline
MBIE have set up a helpline for all New Zealand businesses needing support on financial support, what different alert levels mean for your business, continuity planning and expert help;
North Island – 0800 500 362
South Island – 0800 505 096
We understand small businesses will be facing many challenges at the moment and we will be working to support our clients over phone and email throughout Alert levels 3 & 4. Our office is closed and most of our staff are working from home.
If you’re not sure how to check or prove your revenue drop when applying for any of the Covid-19 support packages check out this article
Remember to practise safe hygiene, scan codes and look after yourself, your family and each other.
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