Weekly Digest – 6 October 2021

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

COVID-19 Vaccine Certificates to Be Used From Next Month

Prime Minister Jacinda Ardern announced that COVID-19 vaccine certificates will be used at large events and other high-risk settings from next month.

2 Million Kiwis Fully Vaccinated

New Zealand has hit another milestone, as more than 2 million people have received two doses of the COVID-19 vaccine. As of Monday this week, more than 2 million people were fully vaccinated with two doses of the Pfizer vaccine, representing 48% of Kiwis 12 years old and above.

Also, more than 3.3 million people (or 79% of the population aged 12 and above), have had at least one dose of the vaccine.

Business Outlook Drops in Q3 Due to Delta Outbreak

New Zealand business confidence declined in Q3 as the latest lockdown hit. A net 11% of businesses surveyed expected general business conditions to deteriorate, compared with a net 7% positive reading in the previous quarter, the New Zealand Institute of Economic Research’s (NZIER) quarterly survey of business opinion showed.

While the demand was still holding up, the adverse impact of the current Delta outbreak had affected business confidence.

If you’re worried about the future of your business, get in touch with us and we’ll help you get a plan in place.

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

Applications for the fourth COVID-19 Wage Subsidy August 2021, known as Wage Subsidy August 2021 #4, are open for two weeks between 9am, 1 October and 11.59pm, 14 October 2021.

You can check the eligibility requirements here. If you’ve already applied for a previous COVID-19 Wage Subsidy August 2021, you need to wait until two weeks after you applied before you can apply for the new Wage Subsidy #4, even if you haven’t received a payment yet.

Get in touch with us if you have any questions.

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

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 an increase in Alert Levels.

You can receive $1,500 per business plus $400 per full-time employee (FTE), up to 50 FTE.
The maximum payment is $21,500.

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 now 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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