Covid assistance for business owners (update 17 January 2022)

COVID government support

When New Zealand moves to the Covid-19 Protection Framework (the traffice light system), the wage subsidy and resurgence payments will no longer be available. This will be from 11:59pm on 2 December 2021. Read further in the links below.

Covid-19 Protection Framework ** NEW **
Transition Payment ** NEW **
Advice and planning support UPDATE (Auckland only)
Wage Subsidy
Resurgence Support Payments (RSP)
Short Term Absence Payment
Leave Support Scheme
Small Business Cashflow Loan (SBCS)
Calculating your revenue from Xero – account transactions
Calculating your revenue from Xero – profit and loss

Covid-19 Protection Framework ** NEW **

As highlighted at the beginning of this blog, the the wage subsidy and resurgence payments will no longer be available from 11:59pm on 2 December 2021.

Across the board support will not be provided for areas designated Orange or Green…

The above is from Grant Robertson’s (Finance Minister) announcement on 22 October 2021. The reasoning is that under Orange and Green, businesses will be able to operate as normal.

If areas of New Zealand are at Red, financial assistance may be provided, but only in the afflicted area.

If (when) you apply for Wage Subsidy #8 and/or Resurgence Payment #6, payments will still be made if you meet all of the other conditions.

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Transition Payment ** NEW **

The following is from the Covid 19 website.

“On 29 November 2021, the Government has announced a one-off transition payment for businesses as we move to the COVID-19 Protection Framework (traffic light system).

This payment will be made available through the Resurgence Support Payment.

The one-off transition payment is $4000 plus $400 per full-time employee (FTE), up to 50 FTE, with a maximum payment is $24,000.

The eligibility criteria is the same as the Resurgence Payment…”

(40% decline in business revenue)

Applications for the Transition Payment open on 10 December 2021, in the same manner as the current Resurgence Payments.

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Advice and planning support (Auckland only)

The grants for advice no longer require a matching contribution from the business.

Businesses will be able to apply for up to $3,000 worth of advice and planning support, and then receive up to $4,000 to implement that advice.

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Wage Subsidy 

With the introduction of the Covid-19 Protection Framework, wage subsidies are no longer available.

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Resurgence Supports Payments (RSP)

With the introduction of the Covid-19 Protection Framework, RSPs are no longer available.

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Short Term Absence Payment

For those waiting for a Covid test result and are unable to work from home.

The link here will take you to the application section within the WINZ website.

Lump payment rate – $359 for each eligible employee for both part-time and full-time workers.

This will remain the same under the Covid-19 Protection Framework. There is no distinction between Red, Orange, or Green, and currently no end date for applications. However, you can only apply once (for each eligible employee) every 30 days.

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Leave Support Scheme

For those who are required to isolate and are unable to work from home.

Payment rates per week – $600 for full-time workers and $359 for part-time workers.

The link here will take you to the application section within the WINZ website.

This will remain the same under the Covid-19 Protection Framework. There is no distinction between Red, Orange, or Green, and there is currently no end date for applications. However, you can only apply once (for each eligible employee) every 30 days.

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Small Business Cashflow Scheme (SBCS)

You can apply for loan until 31 December 2023 via myIR. On your myIR home screen, you’ll see ‘I want to…”. Click on that, and then ‘Apply for a Small Business Loan’.

The maximum loan amount is $10,000 plus $1,800 for every FTE (Full-time Equivalent Employee). The limit for sole traders is $11,800.

The repayment due date is within five years of your application being approved.

  • If the loan is repaid within 24 months, you won’t be charged interest
  • If the loan is not repaid within 24 months, you’ll be charged interest at 3% of the outstanding amount from the date the loan is approved

This will remain the same under the Covid-19 Protection Framework. There is no distinction between Red, Orange, or Green.

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We’re not able to apply for any of these subsidies or loans on your behalf, but please get in touch if you have any further questions.

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