Government Financial Package
Wage subsidy extension
Applications close 1 September 2020.
A Wage Subsidy Extension payment is available to support employers, including sole traders, who are still significantly impacted by COVID-19 after the Wage Subsidy ends.
It supports employers to continue to pay your employees.
The Wage Subsidy Extension will be available to employers for eight weeks, between 10 June 2020 and 1 September 2020, so you can keep paying your employees. It will be paid to you as a lump sum at the same weekly rate as the Wage Subsidy.
Employers can apply for the Wage Subsidy Extension once you have finished paying your employees the original 12 week Wage Subsidy.
To be eligible, your business must have had a revenue loss of at least 40% for a continuous 30 day period. This period needs to be in the 40 days before you apply, but no earlier than 10 May 2020, and must be compared to the closest period last year.
Information taken from uniteforrecovery.govt.nz
Small business cash flow loan scheme (SBCS)
Applications extended until the end of 2020.
One-off government loans are available for businesses and organisations impacted by COVID-19, including sole traders and the self-employed, to help with cash flow. Applications are now open until the end of 2020 and can be made through myIR. Detailed information can be found on the Inland Revenue website.
The SBCS is open to small to medium businesses with 50 or fewer full-time employee equivalents. This includes sole traders and self-employed businesses.
More information and an overview of this scheme can be found at business.govt.nz
Information sourced from business.govt.nz
Employers: wage subsidy scheme
The major change here is removing the $150,000 cap. There is now no limit on income subsidy so all businesses will be eligible.
Employers, contractors, sole traders or self-employed, qualify to get the COVID-19 wage subsidy.
New dentists, or those operating a new structure need to demonstrate the revenue loss assessment against a similar time period, for example a 30% loss of income, attributable to COVID-19, in March 2020 compared to January 2020.
Self-employed dentists with variable monthly incomes are eligible if they can demonstrate an assessment of lost revenue against the previous year’s monthly average for example a 30% loss of income comparing a pre-COVID-19 period e.g. March 2019 to March 2020.
If there is lost income due to COVID-19, full-time workers receive $585 per week ($350 per week for part-time workers <20 hours), paid in a lump sum package of just over $7000 covering a 12-week period.
The package is for any employer which has suffered, or is projected to suffer, a 30% decline in revenue compared to any months between January and June the previous year.
Employers are encouraged to apply for the subsidies as soon as possible.
Work and Income website workandincome.govt.nz MSD will aim to make first payments no later than five working days from when applications are received.
Banking institutions: relief package
Details will be released this week about a support packaged agreed by Government, Reserve Bank and retail banks providing significant temporary support for mortgage holders and a business finance guarantee scheme for impacted businesses. Details will be made available at covid19.govt.nz