Increased Resurgence Payment and latest Covid business support
There’s a lot going on in the business world as we start the transition from the Covid Alert Level system to the new ‘traffic light’ Protection Framework. Wage subsidies and other support programmes continue to feature with changes coming to the Resurgence Support Payment.
More about business boost to transition to new Covid framework (beehive.govt.nz)
Read on for the latest updates and some ideas to help move your business forward.
Wage Subsidy #6
Applications for the sixth COVID-19 Wage Subsidy August 2021, are open for two weeks between 9am, 29 October and 11.59pm, 11 November 2021.
Businesses and self-employed people must meet the decline in revenue tests 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.
Resurgence Support Payment increased
The amount and frequency of the Resurgence Support Payment will be increasing however, the next payment, which is available from 29 October through myIR, will remain at the current rate of $1,500 plus $400 per full-time equivalent (FTE) employee, up to a maximum of 50 FTE.
Subsequent payments will be for $3,000 plus $800 per FTE, still up to a maximum of 50 FTE. The frequency of the payments will also change. They will be available fortnightly, on 12 November, until Auckland moves into the new Covid Protection Framework.
Apply for resurgence payment (IRD)
Other support available to businesses
Support is available if your business has reduced revenue; if an employee needs to self isolate or to be test for Covid-19; or for those needing specialist advice:
- 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.
- 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.
- Business Debt Hibernation Scheme – allows businesses to get a month’s protection while they talk to their creditors.
- 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.
- Short-Term Absence Payment – 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.
- Training Incentive Allowance – to 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.
These tools are useful in guiding you to find assistance:
- Find COVID-19 Support tool – Work and Income’s tool to help you find the support options you’re eligible for.
- Kiwi Business Boost Tool – the Government has funded specialist consultancy support services to provide advice to businesses who need it. Use this tool to find out what services are available in your region.
Get in touch
Contact us if you have any questions or want to discuss the next steps for your business.