Financial support for businesses | Unite against COVID-19 (covid19.govt.nz)
Thank you for your calls and enquiries over the past fortnight. We were happy to assist those that needed additional advice and information to secure financial support during the recent lock-down announcement. We understand that the current climate is putting financial stress on many businesses and contractors - this newsletter is a reminder about what support is available and also to highlight deadlines and additional applications for the Wage Subsidy. Keep an eye on your financials, as with each additional application process you may be eligible now, when you weren't in the past.
You can use the COVID-19 financial support tool to find out what financial help may be available to you.
This tool will take you, step by step, through a series of questions to understand your personal circumstances such as:
- your work status, for example, employer
- your situation, for example your business is unable to operate
- if your workplace has reduced business and revenue.
The tool will then tell you what financial help and support you can access, and where you can apply or find more information.
Applications for the initial two-week August 2021 Wage Subsidy close at 11.59pm on Thursday 2 September 2021 (today).
Applications for a second Wage Subsidy will open at 9.00am on Friday 3 September. This is available for all businesses and self-employed people who have or predict at least a 40% decline in their revenue.
The Wage Subsidy will be paid as a two-week lump sum. Depending on how long the current lock-down lasts please be aware that you may need to reapply in two week blocks - should you still fit the criteria each round. Apply here.
After the payment is made
- If the revenue decline doesn't eventuate the business needs to repay the subsidy.
- Businesses will need to prepare and keep evidence to support their declaration (but they don't need to provide this on application).
- MSD will complete background checks and target integrity activity. This means a sample of applicants will be asked for proof of revenue decline.
- If the Government decides to extend the wage subsidy, businesses will need to make another application. At this stage the wage subsidy is only for another two week period.
Resurgence Support Payment
Eligible businesses throughout New Zealand can apply for the Resurgence Support Payment if they incur a loss of 30% of revenue as a result of the Alert Level change. More details about how to apply for the RSP are found here at the IRD. It's open for applications now until one month after a nationwide return to Alert Level 1.
Importantly - businesses are able to claim for both the wage subsidy and the resurgence support if they meet the criteria for both.
There are a few other more specialised support payments available, such as Short-Term Absence Payment and Leave Support Scheme, both for businesses more directly associated with employees infected by Covid-19 or those needing to self-isolate. Plus a reminder that the Small Business Cashflow Scheme is still available for some time. More information can be found at the IRD and Work and Income websites.
If you have any questions, comments, or suggestions please don't hesitate to contact us at any time.
With best wishes,
Luke Canton, Helen Canton, Veronica Griffin, Sarah Harrild & Philippa Muller
Flashpoint Accounting Ltd
2 September - Wage Support Subsidy 1st application period deadline.
3 September - Wage Support Subsidy 2nd application period opens.
For a full list of tax related important dates please see the resources page on our website More....