On Monday the Government announced the support available under the new COVID Protection Framework. They also announced that the final Wage Subsidy and Resurgence Support Payment are now available, along with a new Transition Payment. We have set out more details below.
Wage Subsidy – Round 8
The 8th round of the Wage Subsidy is now available nationwide for those affected by the lockdowns. Applications are now open and will close at 11.59pm on Thursday the 9th December.
Businesses may apply if they have or expect to have a loss of 40% revenue over the period 23rd of November to 6th December 2021 (inclusive) as a result of the current rise in alert levels. The loss of 40% of revenue from 23rd of November to 6th December 2021 is when compared to a typical 14-day consecutive period of revenue in the six weeks immediately prior to 17th August 2021.
The payment is $600 per week for each full-time equivalent employee (20 hours or more), and $359 per week per part-time employee (less than 20 hours). This will be paid in a two-week lump sum.
If you have already applied for Wage Subsidy #7 you need to wait until two weeks after you’ve applied before you can apply for Wage Subsidy August 2021 #8. If you apply earlier than this, your application for the new subsidy will be declined.
A reminder will be sent once you are able to re-apply from WINZ. To apply, please click here.
Resurgence Support Payment (RSP)
There is new criteria.
The first 3 RSP payments affected revenue periods are:
- 1st RSP – 17 August 2021 to 1 November 2021.
- 2nd RSP – 8 September 2021 to 1 November 2021.
- 3rd RSP – 1 October 2021 to 1 November 2021.
The application for these payments closes at midnight on 1 December.
The affected revenue periods for payments 4, 5 and 6 are:
- 4th RSP – starting 22 October 2021.
- 5th RSP – starting 5 November 2021 (payment at an increased rate).
- 6th RSP – starting 19 November 2021 (payment at the increased rate).
For each of the 4th, 5th, and 6th RSPs, the affected revenue period ends on the close of the day before (Thursday 2nd December) any area of New Zealand moves to the COVID-19 Protection Framework.
Applications for the 4th, 5th and 6th payments will then close the first working day that is 6 weeks after the end of the affected revenue period (set out above).
Businesses or organizations who experience at least a 30% drop in revenue or capital-raising ability over this 7-day period are able to apply.
The payment is a core payment remains the same, $3000 per entity with $800 per full time employee.
Both the affected revenue period and the comparison period must be calculated retrospectively. The calculations must be based on what has happened, not a forecast of what might happen.
Applications for the RSP are open. Please click here to apply.
Reminder: The eligibility criteria changed on the 9th of September to incorporate newer businesses. Please visit the IRD website for more information: Eligibility for the Resurgence Support Payment
Transition Payment
There will also be a one-off transition payment and will follow the same eligibility criteria as the RSP. Applications will open on the of 10th December and be at a rate of $4,000 per business plus $400 per FTE up to a cap of 50 FTEs – a maximum payment of $24,000.
This is likely to be the last last round of business support, however if anything further is announced we will of course keep you informed. The Government have also said that they will release further support if we are to go into localised lockdowns.
Remember. further Support available and how to apply
- Leave Support Scheme – Please click here to apply.
- Short-Term Absence Payment (STAP) – Please click here to apply.
In addition to the above there are options such as the Business Debt Hibernation Scheme, potential rent relief, IRD payment arrangements and tax purchases through tax traders to help minimise the impact on cashflow.
Should you need any help checking if you are eligible for any of the above or need assistance with the application process, please call your usual Greenlion advisor who will be happy to help.