Update - COVID Level 4 - September 2021

Auckland and Northland: Alert Level 4.

Rest of New Zealand: Alert Level 3

As we continue to work from home, email is currently the best way to get in contact with us. If you are unsure who to email please send it to info@taelsolutions.co.nz

You can also still contact us on the office phone number 09 869 2200 if you have any queries.

We hope you are all keeping safe in your bubbles.

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Government Support packages

Significant Government support for businesses and workers has been triggered following a rise in alert levels to combat COVID-19 in the community.

Applications for these support packages opened from Friday 20 August.

The Wage Subsidy Scheme

Applications for the initial two-week Wage Subsidy (Wage Subsidy August 2021), which opened on 20 August 2021, will close at 11:59pm on Thursday 2 September.

Applications for a second round of Wage Subsidy (Wage Subsidy August 2021 #2) will open at 9am on Friday 3 September. You can apply on the Work and Income website.

If you applied for the Wage Subsidy in the initial two-week period, you can also apply for Wage Subsidy #2, two weeks after your previous application, if you meet eligibility criteria. Work and Income will email you to let you know when to apply. Don’t send in early applications, they won’t be accepted as each payment is for a two-week period. If you didn’t apply for the initial Wage Subsidy you can apply for Wage Subsidy #2 from 3 September, if you meet eligibility criteria. The Wage Subsidy is a payment to support eligible businesses, organisations and the self-employed affected at Alert Levels 3 and 4, so they can continue to pay employees and protect jobs.

Eligible Criteria:

• a registered business, sole trader or self-employed person (who may or may not employ other employees)
• a registered charity (incorporated under the Incorporated Societies Act 1908 and registered under the Charities Act 2005, or registered under the Charities Act 2005)
• an incorporated society (incorporated under the Incorporated Societies Act 1908)
• Each of the employees named in your application must be legally employed by your business, be employed in New Zealand and have not been given notice of redundancy at the date of your application. "Employee" includes you if you are a sole trader, self-employed person and shareholder employees that does not employ employees.
• your business has had, or you predict will have, a decline in revenue that can be attributed to the effect the move to Alert Level 4 and 3 that is:
• at least a 40% decline over a period of 14 consecutive days compared to a typical 14 consecutive days of revenue in the six weeks immediately before to the move to Alert Level 4 on 17 August 2021
• if your business has highly seasonal revenue, you must have at least 40% decline over the revenue test period compared to the same 14 consecutive days in 2020 or 2019
• You must prepare and retain evidence to support this declaration, such as records that demonstrate.
• Before making an application, you must have taken active steps to mitigate the impact of the move to Alert Level 4 on 17 August 2021 on your business activities. This includes (but is not limited to) engaging with your bank, drawing on your cash reserves as appropriate, or making an insurance claim.

The Resurgence Support Payment

The Resurgence Support Payment is a payment to help support businesses or organisations with one-off costs due to a COVID-19 alert level increase to level 2 or higher. This is available to eligible firms at the same time as the WSS.

When the RSP is activated, eligible businesses and organisations can apply to receive the lesser of:

• $1,500 plus $400 per full-time equivalent (FTE) employee, up to a maximum of 50 FTEs
• four times (4x) the actual revenue decline experienced by the applicant.

Resurgence Support Payment applications for the alert level increase announced on 17 August 2021 are now open. Applications will remain open for one month after a nationwide return to Alert Level 1.

Eligibility:

• Applicants must have experienced a decrease of revenue or capital-raising ability of at least 30% due to the increase in alert level. (If the applicant is part of a commonly owned group this 30% decrease also needs to be satisfied across the group as a whole). This decrease in revenue or capital-raising ability is compared with a typical 7-day revenue period in the 6 weeks prior to the increase from alert level 1.
• Businesses and organisations (including sole traders) must have been in business for at least 6 months.
• The business or organisation must be considered viable and ongoing.
• Charities and not-for-profit organisations may be entitled to the RSP, provided they meet the other eligibility requirements.
• State sector organisations are excluded from the RSP, but can apply to the Minister of Finance for an exemption to apply for the scheme.
• Income that is received passively – such as interest and dividends, and all forms of residential and commercial rent – is excluded from the measurement of revenue.
• Your business must be physically present in New Zealand.
• Applicants must be 18 years or older.
• Businesses and organisations (including sole traders) must have a New Zealand Business Number.

For more information on the criteria visit the IRD website

When you apply please ensure you have Confirmation of eligibility and you have gathered all your information including:

• NZBN number
• Employee Details
• Bank account
• Revenue Details
• IRD numbers of the other members of the group and the group’s revenue details for the 7-day elevated alert level period and the 7-day comparison period.

Leave Support Scheme (LSS)

The Leave Support Scheme provides a two-week lump sum payment of either $585.80 per week for full-time workers, or $350 per week for part-time workers, who must self-isolate and cannot work from home. More information is available here.

Short-Term Absence Payment (STAP)

The Short-Term Absence Payment provides a one-off (once per 30 days) $350 payment for workers who must miss work due to a COVID-19 test and cannot work from home. Further information about this payment is available on the MSD website.

Small Business Cash Flow Loan Scheme (SBCS)

Government will provide loans to small businesses, including sole traders and the self-employed, impacted by COVID-19 to support their cash flow needs.

If you've previously applied for a SBCS and have fully repaid it, you can apply again.

Applications are open until 31 December 2023. You can apply through myIR.

The small business cash flow loan scheme will provide assistance of up to a maximum of $100,000 to businesses employing 50 or fewer full-time employees. This includes sole traders and self-employed businesses.

Details of the loans include:

• $10,000 to be provided to eligible businesses
• an additional $1800 per equivalent full-time employee
• interest free if the loan is paid back within two years
• an interest rate of 3% for a maximum term of five years
• repayments not required for the first two years
• you must show at least a 30% drop in revenue due to Covid-19, measured over a 14-day period in the past six months compared with the same 14-day period a year ago. If your revenue from the same period a year ago was also affected by COVID-19, compare the same 14-day period two years ago.
• maximum amount you can borrow depends on the number of full-time and part-time employees.

Use the small business cash flow loan scheme eligibility tool and find out how to apply.

COVID-19: Small business cash flow loan scheme eligibility tool

Tax and ACC Support

If you’re having difficulties meeting your tax obligations due to COVID-19, Inland Revenue has various support schemes and options to help.

COVID-19 business and organisations(external link) — Inland Revenue

During the COVID-19 outbreak, you’ll find ACC updates that affect you here:

General COVID-19 information for businesses(external link) — ACC

Please note the information provided is subject to change as updated by Government. We will try and keep you informed with the updates as they arise.

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