Applications are open today for the new Covid-19 support scheme. Have you checked your business is eligible?

 

Accepted businesses will receive a maximum support payment of $24,000. This will be available as $4,000, plus $400 per full time employee (with a 50-employee cap amount, or to amount of $24,000). These payments will be made available fortnightly for 6 weeks (3 payments in total).

 

Does your business meet the requirements?

 

You will need to show at least a 40% drop in revenue from a typical trading period of 7 consecutive days within the 6 weeks prior to the shift into phase 2 of the Omicron response. Essentially, a typical 7 consecutive day period in any week 6 weeks prior to 15 February 2022 (so, January 5th to 15th February 2022), compared to 7 consecutive days from this date.

 

If it’s not likely that your business will meet the 40% drop for the 6 weeks prior to the phase change, you can make the comparison to the same time period in 2021 (January 5th 2021, to February 15th 2021). However, applications for the use of the 2021 date will not be available till 14 March 2022.

 

 

This may seem like a wordy sentence for a simple calculation (and you’re right). The new support package uses the same calculations as last years round of the Resurgence Support Payment. Have a look at our quick video demonstrating how to do these calculations on Xero. If you’re stuck, feel free to give us a call or flick us an email – we’re eager to help. 

 

Other changes relating to Covid-19 Support Payments

 

Changes have also been made to the Small Business Cashflow Loan Scheme that will increase the amount of funding available for businesses – essentially a ‘top up’ of the loan. Businesses who have previously accessed the loan will be able to draw down an additional $10,000 with a new repayment period of 5 years, with the first 2 years being interest free.

 

Inland Revenue have also stated that they’re extending the ability to apply for flexible tax payment dates and terms to help aid in cashflow. Please, please, please get in touch with Inland Revenue, or the Outside team if you’re having difficulty keeping up with your tax payments as there are always payment options to help.

 

Any queries, comments, or concerns on any updates mentioned above, get in touch with your Outside go-to. Otherwise, stay safe, optimistic, and kind – you’ve got this!

 

Your Outside Team

 

 

 

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