Weekly Digest – 13 October 2021

Welcome back to our Weekly Digest. Read on for the latest updates and some ideas to help us all move forward.

Government to Ramp Up COVID-19 Vaccinations

A record 100,000 COVID-19 vaccine doses in a single day is expected in the mass immunization drive on 16 October, as the government aims to boost vaccination rates before easing restrictions in Auckland.

Prime Minister Jacinda Ardern encouraged those 12 years old and above to help make the country one of the most vaccinated and protected countries in the world. So far, over 58% of the eligible population over 12 years old have been fully vaccinated.

Mandatory Vaccination for High-risk Health and Disability Sector Workers

COVID-19 Response Minister Chris Hipkins announced on Monday that high-risk health and disability sector workers will need to have had their first dose by 30 October, and be fully vaccinated by 1 December.

The list of those covered by this requirement will be provided in the coming days.

Cook Islands Travel Bubble May Resume When NZ is at Level 1

New Zealanders can expect to travel to the Cook Islands when the whole country moves into Alert Level 1.

According to Cook Islands Prime Minister Mark Brown, even if there were still community cases, the Cook Islands could have a high degree of confidence when all of New Zealand moves to the lowest alert level.

If your business has to close temporarily or reduce opening hours

COVID-19 Wage Subsidy

If your business cannot operate because of Alert Level 4 restrictions or you will lose revenue, you can apply for the COVID-19 Wage Subsidy scheme to help keep paying your staff and protect jobs.

Businesses and self-employed people must expect a 40% drop in revenue to be eligible to receive the wage subsidy.

The wage subsidy is paid in a 2 week lump sum. You can get:

  • $600 per week for each full-time employee
  • $359 per week for each part-time worker retained.

As an employer you must pass on the full wage subsidy to your employee. If the wage subsidy is more than your employee’s pay, you can continue to pay them at their normal rate.

Find out more about the Leave Support Scheme on the Work and Income website.

Wage Subsidy 2021 #4 closing and #5 opening

Applications for the COVID-19 Wage Subsidy August 2021 #4 close on the 14th October. A fifth Wage Subsidy will open for applications at 9am on the 15th October.

You can check the eligibility requirements here. Get in touch with us if you have any questions.

COVID-19 Resurgence Support Payment

The COVID-19 Resurgence Support Payment helps cover wages and fixed costs for businesses who have been directly affected when there is an increase to Alert Level 2 or higher for a week or more.

To be eligible, your business must have experienced at least a 30% drop in revenue or a 30% decline in capital-raising ability over a 7-day period, due to the increase in Alert Levels.

You can receive $1,500 per business plus $400 per full-time employee (FTE), up to 50 FTE. If you’re a sole trader, you can receive a payment of up to $1,900.

Applications for the COVID-19 Resurgence Support Payment are open. You need to apply through Inland Revenue. Businesses anywhere in New Zealand can apply if they meet the eligibility criteria.

Find out more information about the COVID-19 Resurgence Support Payment and how to apply here.

If your business has reduced revenue

Small Business Cashflow Loan Scheme

If you employ 50 or fewer staff, you may be able to apply for the Small Business Cashflow Loan Scheme. This is a one-off 5 year loan where you can borrow a maximum of $10,000 plus $1,800 per full-time-equivalent employee within your business.

  • When applying for the loan, you need to be able to declare that your business is viable.
  • Your business must have experienced a minimum 30% decline in actual or predicted revenue over the period of a month, compared with the same month last year.
  • Applications are open until 31 December 2023 through myIR. If your business does not have a myIR account, you will need to create one to apply.

Loans will be interest free if they are paid back within 2 years. The interest rate is 3% for a maximum term of 5 years.

IRD tax assistance

If you’re finding it hard to meet your tax obligations, Inland Revenue may be able to help. Get in touch with us if you have any questions.

Insolvency relief

The COVID-19 Business Debt Hibernation scheme allows businesses to get a month’s protection while they talk to their creditors.

If an employee needs to self isolate

COVID-19 Leave Support Scheme

If an employee cannot work from home while self-isolating, you may be able to apply for financial support so they can continue to get paid.

The Leave Support Scheme is paid as a 2 week lump sum at the rate of:

  • $600 a week for full-time employees
  • $359 a week for part-time employees

You cannot get the Wage Subsidy August 2021, Leave Support Scheme and Short-Term Absence Payment for the same employee at the same time.

If an employee is awaiting the result of a COVID-19 rest

COVID-19 Short-Term Absence Payment

The Short-Term Absence Payment is available for businesses, including self-employed people, to help pay employees who cannot work from home while they wait at home for a COVID-19 test result. This is a one-off payment of $350. You can find the details here

Kiwi Business Boost Tool

The Government has funded specialist consultancy support services to provide advice to businesses who need it. You can use the Kiwi Business Boost Tool to find out what services are available in your region.

The Treasury website’s COVID-19 Economic Response Measures can also provide more information on the range of supports available to businesses.

Training Incentive Allowance

The Training Incentive Allowance can help with tuition fees, books, childcare, equipment, transport and any additional caring costs while studying. It’s available for courses at levels 1-7 of the NZ Qualifications Framework. Visit the Work and Income website to find out who’s eligible, how much you can get and who can apply.

Get in touch

Contact us if you have any questions or want to discuss the next steps for your business.

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