COVID-19 Update (December 2021)
COVID-19 Financial Support Tool
You can use the COVID-19 financial support tool to find out what financial help may be available to you.
https://covid19.govt.nz/business-and-money/financial-support/covid-19-financial-support-tool
Traffic Light Transition Payment
A one-off transition payment is available for eligible businesses as New Zealand moves into the traffic light system. If your business had reduced income between 3 October 2021 and 9 November 2021, you may be eligible for the payment. The payment is particularly in recognition of the length of time Auckland, Waikato and Northland businesses spent under higher Alert Levels.
https://www.ird.govt.nz/covid-19/business-and-organisations/employing-staff/financial-support/resurgence-support-payment
- Businesses will be eligible for $4,000 plus $400 per full-time equivalent employee (FTE), up to a maximum of 50 FTEs.
- You must have experienced at least a 30% decline in revenue over a 7-day period starting on or after 3 October 2021 and ending on the specific date relevant to the period you are applying.
- Your decline in revenue must me compared to a typical 7-day period in the 6 weeks prior to the alert level being raised on 17 August 2021.
- For a cashflow business, such as a restaurant, this is likely to be the daily takings.
- For a business that invoices clients, this will be the activities the business carries out and then bills clients for.
- You must keep a record of your calculations including dates of the affected revenue period and comparison period, amount of revenue earned in each period and how the revenue drop has been calculated.
- You must have been in business for at least 1 month.
Auckland Business Support
The Government announced an economic support package which includes a $60 million fund for business advice and mental health support for Auckland businesses. Businesses will be able to apply for up to $3,000 worth of advisory support, and up to $4,000 to implement that advice, delivered through the established Regional Business Partner Network. As part of the package, $10 million is being provided for mental health and wellbeing support to small businesses.
https://www.regionalbusinesspartners.co.nz/page/covid-19-support
Wage Subsidy Scheme (WSS)
The Wage Subsidy Scheme (WSS) is a payment to support employers throughout New Zealand, so they can continue to pay employees and protect jobs for businesses affected by the move to Alert Levels.
https://www.workandincome.govt.nz/covid-19/wage-subsidy
- If you applied for a previous Wage Subsidy, you need to wait until two weeks after your applied before you can apply for the current Wage Subsidy.
- You must have had, or predict you will have, at least a 40% decline in revenue over the revenue test period, compared to a typical 14 consecutive days of revenue in the six weeks immediately before 17 August 2021.
- Businesses will be eligible for $600 per week per full-time equivalent employee and $359 per week per part-time employee. The subsidy will be paid as a 2-week lump sum.
- You must prepare and retain evidence to support your declaration, including how the decline was attributable to the move in alert levels and that you have taken active steps to mitigate the impact of the move in alert levels.
- You must discuss your application with your named employees and gain their consent to information sharing.
Previous Wage Subsidy Schemes:
- Wage Subsidy #1 closed 3 September 2021
- Wage Subsidy #2 closed 16 September 2021
- Wage Subsidy #3 closed 30 September 2021
- Wage Subsidy #4 closed 14 October 2021
- Wage Subsidy #5 closed 28 October 2021
- Wage Subsidy #6 closed 11 November 2021
- Wage Subsidy #7 closed 25 November 2021
- Wage Subsidy #8 closed 9 December 2021
Resurgence Support Payment (RSP)
The Resurgence Support Payment (RSP) is a one-off payment to help support viable and ongoing businesses due to a COVID-19 alert level increase to level 2 or higher. The Government could activate the RSP multiple times and businesses can apply each time it is activated as long as they meet the eligibility criteria.
https://www.ird.govt.nz/covid-19/business-and-organisations/employing-staff/financial-support/resurgence-support-payment
- Businesses will be eligible for $1,500 plus $400 per full-time equivalent employee (FTE), up to a maximum of 50 FTEs, or 4 times (4x) the actual revenue decline experienced by the applicant.
- For the RSP #5 onwards, the payment rate increases to $3,000 plus $800 per FTE, up to a maximum of 50 FTEs and will be available fortnightly.
- You must have experienced at least a 30% decline in revenue due to the increase in alert level.
- For a cashflow business, such as a restaurant, this is likely to be the daily takings.
- For a business that invoices clients, this will be the activities the business carries out that would entitle it to bill or invoice either immediately or at a later date.
- You must keep a record of your calculations including dates of the affected revenue period and comparison period, amount of revenue earned in each period and how the revenue drop has been calculated.
- You must have been in business for at least 1 month.
Previous Resurgence Support Payments:
- RSP #1 closed 1 December 2021
- RSP #2 closed 1 December 2021
- RSP #3 closed 1 December 2021
- RSP #4 opened 29 October 2021 and will close 13 January 2022
- RSP #5 opened 12 November 2021 and will close 13 January 2022
- RSP #6 opened 26 November 2021 and will close 13 January 2022.
Leave Support Scheme (LSS)
The Leave Support Scheme (LSS) is available for employers, including self-employed people, to help pay their employees who need to self-isolate and can't work from home. Applicants will be eligible for $600 per week for each full-time worker and $359 a week for each part-time worker. This is paid as a 2-week lump sum and you can re-apply for that same person in the last week of the payment period.
https://workandincome.govt.nz/covid-19/leave-support-scheme
Short-Term Absence Payment (STAP)
The Short-term Absence Payment (STAP) is available for employers, including self-employed people, to help pay their employees who cannot work from home while they wait for a COVID-19 test result. Applicants will be eligible for a one-off payment of $359 for each eligible worker. You can only apply once for each eligible worker, in any 30-day period (unless a health official or doctor tells the worker to get another test).
https://workandincome.govt.nz/covid-19/short-term-absence-payment
Small Business Cashflow Scheme (SBCS)
The Small Business Cashflow Scheme (SBCS) was introduced to support small to medium businesses and organisations struggling with a loss of actual revenue due to COVID-19. Applications are open until 31 December 2023. Applicants will be eligible to borrow $10,000, plus $1,800 per full-time-equivalent employee. Loans will be interest free if they are paid back within 2 years. If you do not fully repay the loan within 2 years, loans will be subject to an annual interest rate of 3% from the date the loan is made available to you.
https://www.ird.govt.nz/covid-19/business-and-organisations/small-business-cash-flow-loan
Operating at Alert Levels
Check out the below website for useful guidance for how the alert level rules apply to different business types.
https://www.business.govt.nz/covid-19/operating-at-alert-levels
Mandatory Recording of Visitors
The Government announced that record keeping will become a requirement for people aged 12 and over at all Alert Levels for busy places and events. All businesses and workplaces must display an NZ COVID Tracer QR code for each location. This legal requirement applies at Alert Level 1 and higher. There are 2 ways to get your QR code posters, 1) Complete the online form; 2) Use the Ministry of Health bulk-upload template.
https://covid19.govt.nz/business-and-money/businesses/get-your-qr-code-poster
Contacting Inland Revenue
Inland Revenue have advised they are receiving a high volume of calls. Self-Service options are available through myIR and instructions can be found on their website.
https://www.ird.govt.nz/contactus