COVID-19 Support Payments

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COVID-19 Support Payments

 

With cases of Omicron on the rise we wish to remind you that your business may be eligible for COVID financial support.

COVID SUPPORT PACKAGE:

Earlier this week the Government announced a new financial support package for businesses most affected by the Omicron outbreak.

Applications for the first payment open on 28 February with payments starting from 1 March 2022.

Each COVID Support Payment will be $4,000 per business, plus $400 per full-time employee, capped at 50 full-time employees or $24,000.  (This is the same rate as the most recent Transition Payment.)

To be eligible, businesses need to show a 40% drop in revenue for seven consecutive days after 15 February (date on which we shifted to Phase 2 of the Omicron response) compared with a seven-day period in the six weeks prior to that date.

The new COVID Support Payment will be available on a fortnightly basis for six weeks, with three payments in total.  This may be extended if necessary, depending on how long the Omicron outbreak lasts for.

Inland Revenue will be updating their website in the coming days ready for applications to be made from 28 February.

For more information, please click here.

SHORT TERM ABSENCE PAYMENT:

This payment is available to businesses, including self-employed people, to help pay their employees who cannot work from home while they wait for a COVID-19 test result.

For more information or to apply please click here.

LEAVE SUPPORT SCHEME:

The COVID-19 Leave Support Scheme is available to employers, including self-employed people, to help pay their employees who have been advised to self-isolate because of COVID-19 and can’t work from home during that period.

For more information or to apply please click here.

SMALL BUSINESS CASHFLOW SCHEME TOP-UP:

The Government announced changes to the Small Business Cashflow Scheme, so businesses can take out an additional $10,000 with a new repayment period of five years.  They also announced that the first two years of accrued base interest will be removed from all borrowers who have, or will, take out a loan under this scheme.  This change means that interest will only start accruing at the beginning of year three.

For more information or to apply please click here.

TAX PAYMENT DATES:

There may also be some flexibility around making tax payments in full and on time for those businesses adversely affected by COVID-19.  Please get in touch if you would like help with applying for a payment arrangement, deferring your tax payment date, or to request for penalties and interest to be written off.

 

If you are unsure what financial support could best assist your business or what tax treatment applies to any of the payments that you may have already received, please give us a call on 06 8768124.  We are here to help.

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