COVID-19 HELP & RESOURCES
Although Auckland is by far the worst affected this time around, there is no doubt that the rest of the country is hurting as well when Auckland is under attack. As the prime minister has said so many times:
❤️ WE ARE IN THIS TOGETHER ❤️
The government recognises the strain on businesses, and have implemented a row of measures to assist you to be able to ride out the storm. Some of these measures are simply continuing or rolling on measures already announced, while others are new. See below a round up below of some of the ways your company can get help to stay afloat during this pandemic:
1. COVID-19 RESURGENCE WAGE SUBSIDY
A sort of a continuation of the extended wage subsidy, but slightly different, the new Resurgence Wage Subsidy was announced by finance minister Grant Robertson on Monday Aug 17th.A 2-week COVID-19 Resurgence Wage Subsidy payment will be available nationally for employers, including self-employed people, who are financially impacted by the resurgence of COVID-19 and changes to COVID Alert Levels. In short, it is a 2-week subsidy only, and these are the criteria you need to meet to be eligible:
- New Zealand employers who have had, or expect to have, a revenue drop of at least 40% because of COVID-19, for a 14 day period between
- The timeframe is any 14 day period between 12 August to 10 September, and the revenue drop should be compared to a similar period last year (if you are a new company or a high-growth company, the period you compare to should be a comparable period recently).
- The subsidy is only available to companies that aren’t already getting the Wage Subsidy, Wage Subsidy Extension or the Leave Support Scheme
- $585.80 for people working 20 hours or more per week (full-time rate)
- $350.00 for people working less than 20 hours per week (part-time rate).
You can apply for the Resurgence Wage Subsidy from 1pm on 21 August until 3 September 2020.
For full criteria and how to apply, read more here
2. COVID-19 LEAVE SUPPORT SCHEMEPreviously known as the 'COVID-19 Essential Workers Leave Support' because it was only available to essential businesses, this scheme is now called 'COVID-19 Leave Support Scheme' because it's available for all employers who meet the criteria.To be eligible, as an employer you must have employees who either:
- Have tested positive for COVID-19 and are required to remain off work until they've been cleared by a health professional to be released from self-isolation, or
- Have come into contact with someone who has COVID-19 and must self-isolate for 14 days (as required by Ministry of Health guidelines)
- Are at higher risk if they get COVID-19, and Ministry of Health guidelines recommend they stay at home while public health restrictions are in place
- Have household members who are at higher risk if they get COVID-19 and the Ministry of Health recommends the employee also remains at home to reduce the risk to them.
Generally, under Alert Levels 3 and 4 people who are at higher risk if they get COVID-19 are recommended to stay at home. Note: If you apply for the Leave Support Scheme before 1pm on 21 August 2020 you have to meet a revenue test. The revenue test won't apply after this time. For full criteria and how to apply, read more here
3. COVID-19 SMALL BUSINESS CASH FLOW LOANOrganisations and small to medium businesses, including sole traders and self-employed, may be eligible for a one-off loan with a term of 5 years if they have been adversely affected by COVID-19. To be eligible, these criteria apply:
- Have less than 50 full-time staff.
- Eligible businesses and organisations are entitled to a one-off loan. The maximum amount loaned is NZ$10,000 plus $1,800 per full-time-equivalent employee.
- The annual interest rate will be 3% beginning from the date of the loan being provided. Interest will not be charged if the loan is fully paid back within one year.
Applications first opened on 12 May 2020, this scheme has now been extended, and you can now be submit up to and including 31 December 2020. For full criteria and how to apply, read more here
4. COVID-19 TEMPORARY LOSS CARRY-BACK SCHEMEBusinesses expecting to make a loss in either the 2020 year or the 2021 year can use that loss to offset profits they made the year before, i.e. you can carry the loss back one year to the preceding income year. This can be done before the loss year return is filed.You must let the IRD know if you are going use the loss carry-back scheme. You can do this in the ‘I want to’ section of your income tax account in myIR.There are two ways to claim your loss carry-back:
- Include the carried back loss in your tax return – IRD will automatically refund any overpaid tax.
- Ask for a refund of any provisional tax you have paid for 2020 if you are going to carry back a loss from 2021.
IRD can refund some or all of the tax already paid for the preceding year before the loss year has finished by enabling customers to estimate their loss. Refunds will be processed a lot faster if you use myIR.For full criteria and how to apply, read more here
5. MORTGAGE HOLIDAYBanks are taking applications for mortgage holidays from consumers affected by Covid-19. A mortgage holiday lets you temporarily stop making repayments on your home loan if you’re under financial pressure. Homeowners who are struggling financially as a result of the Covid-19 lockdown can apply to their bank for a six-month mortgage holiday. Anyone affected financially by Covid-19 can apply for a mortgage holiday. But before you consider deferring mortgage repayments, take the following into account:
- A mortgage holiday will give you a break from making regular payments when your finances are under pressure.
But it is not a holiday from interest: interest will continue to be charged on your debt, which means that you’ll be paying more in the long term to repay your mortgage.
- If you need to apply for a mortgage holiday, keep it as short as possible. The longer you put repayments on hold, the more you’ll pay in interest. A three-month mortgage holiday will be better than taking a six-month holiday.
- Consider other options before applying for a mortgage holiday. Reducing your regular mortgage repayments could help lessen the financial load while still helping you to reduce your debt.
6. COVID-19 BUSINESS ADVISORY FUND through REGIONAL BUSINESS PARTNER NETWORKA fantastic way to get help and advise on your business and its activities during the pandemic. Is your online presence up to scratch? Do you need a different marketing plan? Help with Strategy or general Business Development? You can get help here. The details are:
- The Government has allocated additional funding to support businesses through the COVID-19 pandemic.
- The Covid-19 Business Advisory Fund has been provided by government to enable businesses to access expert advice and support and is being administered through the Regional Business Partner Network.
- Business owners can access up to $5000 excl. GST per business from the COVID-19 Business Advisory Fund.
- This funding can be used with a range of providers of registered services depending on business needs. It is 100% funding; no co-funding is required.
WE HAVE DONE THIS BEFORE AND WE CAN DO IT AGAIN
❤️ KIA KAHA NEW ZEALAND ❤️