As you are most likely aware, the Government has extended its current wage subsidy scheme and introduced a resurgence wage subsidy to support businesses that have been impacted by the current national lockdown levels.
We thought it may assist to have a summary overview of each scheme and links on where to find out more information. These are outlined below.
Resurgence wage subsidy
Businesses that have had or are expect have a revenue drop of at least 40% for a continuous 14-day period between 12 August 2020 and 10 September 2020 compared to a similar period last year can apply for a two-week wage subsidy payment.
This payment is available to all businesses nationally for employees who aren’t receiving the wage subsidy, wage subsidy extension, or Leave Support. Work and Income is aiming to pay this subsidy within five working days of receiving an application as they will be checking the information provided against what’s held by Inland Revenue.
This subsidy is available to businesses that have experienced a 40% decline in revenue for a 30-day period due to COVID-19 compared to a similar period in 2019; this period must have occurred during the 40 days before making an application.
Eligible businesses can receive an eight-week payment, but you cannot apply for the extension until your 12-week wage subsidy has finished. New or high growth businesses that don’t have prior revenue to test their eligibility can still apply for the wage subsidy; contact Work and Income for more information.
More information about these packages including eligibility and payment rates can be found here
The Government has also provided New Zealand Trade & Enterprise (NZTE) with additional funding for Kiwi businesses impacted by COVID-19. Companies can apply for up to $5,000 in funding to access business advisors that can provide advice and expertise in the following areas:
Finance and cashflow management
Business continuity planning
Digital enablement strategy
Health and wellness
Small Business Cashflow (Loan) scheme (SBCS)
The Inland Revenue Department (IRD) has introduced a small business loan for an immediate cash flow. The SBCS is available until 31 December 2020. The IRD will administer the payments and repayments of this scheme. More information about this can be found here
If your payroll has changed to reflect reduced staff and/or hours your ACC levies are also likely to have decreased. You can find out about updating your provisional ACC levies here.
This is just a snap shot of current available support and there are other additional measures available including a range of support from IRD. For more information about the support packages listed and other potential options please contact the agencies directly or have a discussion with your accountant or financial advisor.