Covid-19 Financial Support
On Friday, 22 October 2021 the Government announced further business support, available to businesses across New Zealand. As we are aware this support keeps changing, and it can be difficult to stay ahead of the game, we have compiled a copy of the support schemes available below, and what you need to know to decide if you may be eligible.
Increase to Resurgence Support Payment
On Friday, 22 October 2021 the Government announced there will be an increase to the Resurgence Payment Support as New Zealand slowly transitions into the new ‘Covid-19 Protection Framework’.
Implemented on Friday, 12 November 2021, the Resurgence Support Payment will be paid out to businesses fortnightly.
The Resurgence Support Payment is as below:
Businesses can receive up to a maximum of $3000, plus $800 per full-time employee, this only applies to businesses with up to 50 full-time employees.
This making the maximum payment received fortnightly $43,000.
If you are self-employed, or a sole trader then you can receive a payment of $3,800.
The eligibility criteria remain the same.
The Resurgence Support Payment will stay in place and be available to businesses across New Zealand until Auckland moves into the new Covid-19 Protection Framework.
The Wage Subsidy Scheme will continue to be available to New Zealand businesses whilst any part of the country remains at Alert Levels 3 or 4. For example while Auckland remains at Level 3, businesses in Auckland and any other part of the country can apply for the Covid-19 Wage Subsidy.
By applying for the Wage Subsidy Scheme, you are able to continue paying your staff and protect jobs. However, businesses must be able to meet the eligibility criteria in order to apply.
Businesses and those who are self-employed must expect a 40% drop in revenue whilst in Alert Levels 2 or above to receive the wage subsidy.
The wage subsidy is paid in a 2-week lump sum, what is available is shown below:
$600 per week for each full-time employee a business has
$359 per week for each part-time employee a business has
Note - A business cannot receive the Wage Subsidy, Leave Support Scheme and Short-Term Absence Payment for the same employee all at the same time.
Small Businesses Cashflow Loan Scheme
If your business employs 50 or fewer staff, you could be eligible to apply for the Small Business Cashflow Loan Scheme. This is a one-off, 5-year loan which you can borrow a maximum of $10,000 plus $1,800 per full-time (or equivalent to full-time) employee within your business.
The criteria which you must follow to be able to apply for this loan is as follows:
When applying for the Small Business Cashflow Loan, you will need to be able to declare that your business is viable.
Your business must have experienced a 30% (minimum) decline in actual/or predicted revenue over the time frame of a month, this needs to be in comparison to the same months as the following year.
The applications are open until Friday, 31 December 2023, which can be found through myIR. However, if your business doesn’t have a my IR account, you must create one in order to apply.
Loans will be interest free if they are paid back within a time frame of 2 years. The interest is 3% for a maximum term of 5 years.
If an employee is required to self-isolate and they are unable to work from home, you may be eligible to apply for the Covid-19 Leave Support Scheme for them. This is not only for full-time employees, employees on a casual employment arrangement are also eligible for this payment.
This payment can also be used to help pay employees who:
Have contracted Covid-19 and need to self-isolate until a doctor tells them otherwise.
Have been in close contact with someone who has contracted Covid-19.
Is someone who is of higher risk of contacting Covid-19 and getting sick.
Lives with someone who is of higher risk of contracting Covid-19 and getting sick, and/or a doctor or health professional has instructed those in the household to isolate to help reduce the risk of transmitting Covid-19 to those vulnerable household members.
Have been instructed by public health officials to self-isolate.
Much like the Wage Subsidy Scheme, the Leave Support Scheme is paid as a 2-week lump sum:
$600 per week to those full-time employees
$359 per week to those part-time employees
This payment is available to businesses anytime to help pay employees and is not restricted to any changes in Alert Levels.
Covid-19 Short-Term Absence Payment
This payment is available to those businesses who require help in paying employees who are unable to work from home and the following:
Need to stay home whilst waiting for a Covid-19 test result to come back.
Lives with someone who has been at a location of interest during the same time as suspected or confirmed cases and need to stay home whilst they wait for the household member to receive a negative test result.
Need to stay home to look after a dependent child who has been asked to get tested.
Employees who are on a casual agreement are eligible for the payment as well as those on full-time agreements.
The payment is a one-off amount of $359 for each worker who is eligible by meeting any of the criteria, while they are staying at home waiting for test results in any of the above situations. The payment amount stays the same for both full-time and part-time employees.
Businesses are able to apply for the Short-term Absence Payment at any time, it is not limited to when there is a risk of community transmission or change in Alert Levels.
Additional Support for Businesses in Tamaki Makarau/Auckland
Auckland businesses will soon be able to apply for up to $3000 worth of advice and planning support, along with up to $4000 in order to implement the advice received through the established Regional Business Partners Programme. We are approved as a funded service provider – so reach out to use if you would like to discuss this further.
There will also be funding available for businesses to apply for mental health support for their employees, as this is a tough time New Zealand is going through.
Ella smith
HR Admin