The world was astonished with how New Zealand has handled COVID-19 since March 2020 but with Delta sneaking its way into the country, many businesses find themselves unable or constrained to trade again as we slip back into Alert Level 4. The Government has reassured businesses that the wage subsidy and resurgence support payment will be available to them.
We’ve recently received the dreaded announcement of being back to Level 3 or higher for seven days or more so a new Wage Subsidy Scheme has been put in place. You can lodge your applications for the WSS here starting Friday 20 August 2021. It is very much the same as the previous schemes but the good news is that the payments are upped to $600 per week per full-time employee and $359 per part-time.
You can claim these payments bi-weekly for the duration of the Alert Level escalation rounded to the nearest fortnight, unlike the lumpsum approach with the original wage subsidy and wage subsidy extension. The business would have suffered a 40% reduction in revenue compared to a typical six-week period prior to the Alert Levels. The loss in revenue must have happened over 14 consecutive days from 17 August to 30 August. Evidence is required and other requirements such as consent from employees to apply, staff retention, passing on the subsidy to staff and taking active steps to mitigate the financial effects of COVID.
The Resurgence Support Payment is also available to regions that move to Alert Level 2 for seven days or more. A new RSP is available for businesses in case of Alert Level 4. The RSP is available to businesses that suffer a reduction of 30% or more in revenue because of the lockdowns. The same evidence is required. It is available to businesses and sole traders that have been operating for at least six months.
The payment amount is dependent on the size of the organisation. Individual businesses will receive $1,500 and an extra $400 per employee up to 50 FTEs. The payment is the lesser amount calculated using the above formula or four times the revenue decline. RSP is also subject to GST but input tax credits can be claimed when the RSP is spent. You can start lodging your applications on Tuesday 24 August here
Businesses have the Leave Support Scheme for employees who need to self-isolate. It provides a fortnightly payment of $1,171.60 or $700 respectively for full-time or part-time employees. The Short-Term Absence is a $350 payment per eligible employee for those awaiting a COVID-19 test result but cannot work from home. It also applies to self-employed, parents or caregivers with dependents awaiting test results. It is for employees who have used their sick leave entitlements. Small businesses with a maximum of 50 employees can apply for a Small Business Cashflow Loan of up to $100,000. The maximum loan value is $10,000 plus $1,800 per FTE. Loans are interest free for two years.
Our Business Clients
Cam recently caught up with Grant Douglas, owner of Makers Fabrication, to get his perspective on a few things. If you want to chew the fat with Grant further – get in touch and we’ll set it up.
Besides being pretty all-round top blokes, Matt and AJ are bloody screwed on when it comes to growing their business and smashing their goals.
Flick us an email or give us a buzz!
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Te Aro, Wellington 6011 New Zealand
Mail: PO Box 24-457, Wellington 6142
Phone: 04 889 2975
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