COVID-19 Financial Support for Businesses
Even though we’ve been here before, it doesn’t seem to make this nationwide Alert Level 4 lockdown any easier to deal with the second time around. Thankfully Finance Minister Grant Robertson announced last week that the Government has reinstated their Covid-19 Wage Subsidy Scheme and Resurgence Support Payment (RSP). Businesses that meet the criteria could be eligible for both payments.
In addition to the Wage Subsidy and the RSP, the Short-Term Absence Payment, which is for employees who are required to self-isolate while waiting for a Covid-19 test result, and the Leave Support Scheme, for employees who are required to self-isolate because they have returned a positive Covid-19 test, both remain open for application at all alert levels.
Wage Subsidy Scheme
The Wage Subsidy Scheme opened applications on Friday 20th August and will be open for two weeks. Businesses or sole traders will need to declare they anticipate experiencing a 40% loss of revenue due to Alert Level 4 restrictions. Other criteria will likely apply. Eligible businesses or sole traders will receive $600 per week for full-time employees and $359 per week for part-time employees.
Resurgence Support Payment (RSP)
The Resurgence Support Scheme opened applications on Tuesday 24th August and will remain open for one full month after all of New Zealand returns to Alert Level 1. Businesses will need to declare that they have experienced at least a 30% decrease in their revenue. If eligible, businesses can receive up to $1,500 plus an additional $400 per employee, with a maximum of 50 full-time employees. Unlike the wage subsidy scheme, the RSP does not need to be applied directly to employees.
More Information
The following websites provide further information, updates, and a step-by-step support tool for helping you find out which financial support scheme is best for your situation.
Work & Income: Wage Subsidy Scheme
Inland Revenue: Resurgence Support Payment
Government COVID-19 website: Financial support for businesses
Government COVID-19 website: COVID-19 financial support tool
With any financial support scheme, there are varying tax obligations. Contact us if you have any questions or concerns about your current or future financial situation. Email us today.
