Update on COVID-19 Support Available
September 15, 2021
This update covers the financial support available as the lockdown restrictions in Auckland (Level 4) and the rest of the country, particularly our Wellington region, operates in Delta Level 2. The landscape is changing and on-going, so this recap may be useful and contained in one place.
The next level change review is scheduled to be provided by the Government on Monday 20 September. Until then we remain at our current levels, but Auckland will move to Alert Level 3 at 11:59pm on Tuesday 21 September 2021 (to be confirmed by the Government on the 20 September).
The two main support mechanisms for businesses remain the wages subsidy and the resurgence subsidy.
Applications for the first round, Wage Subsidy August 2021 #1, have now closed.
Wage Subsidy August 2021 #2: Applications for the second round, Wage Subsidy August 2021 #2, opened on Friday 3 September and will remain open until 11.59pm on Thursday 16 September (tomorrow).
On 10 September, the Government clarified that the revenue decline test for the Wage Subsidy August 2021 #2 includes the effect of Alert Level 2 on businesses as well as the continuation of Alert Levels 3 and 4 from 17 August 2021. But, importantly, it requires businesses to experience or predict a 40% revenue drop due to a combination of the effects of Alert Levels 4, 3 and 2 on their business (but not the effect of Alert Level 2 alone). Businesses that already applied before this clarification can include the effect of Alert Level 2.
The revenue decline test for this subsidy is at least a 40% over a period of 14 consecutive days between the period 31 August 2021 and 13 September 2021 (inclusive) when compared to a typical 14-day consecutive period of revenue in the six weeks immediately prior to the move to Alert Level 4 on 17 August 2021.
Application for employers for this subsidy are available here.
Wage Subsidy August 2021 #3: Applications for the third round, Wage Subsidy August 2021 #3, will open at 9am on Friday 17 September and will remain open until 11.59pm on Thursday 30 September.
The revenue test period for Wage Subsidy #3 will be 14-27 September 2021. If you applied previously you will receive an email advising when the period is open for you to apply, as it needs to be two weeks after your earlier application. Don’t send in early applications, they won’t be accepted as each payment is for a two-week period and will delay your application when you apply in time.
Resurgence Support Payment applications for the alert level increase announced on 17 August 2021 are open.
A second Resurgence Support Payment has also been announced. Applications for this second payment will open from 8am on Friday 17 September. Businesses and organisations will be able to apply for the second payment, even if they have received the first payment.
Applications for both payments will remain open for one month after a nationwide return to Alert Level 1. These applications are made through myIR on the Inland Revenue website. Applications require you to have a NZBN, which all companies should have, but sole traders and partnerships may need to apply for one.
For each resurgence subsidy application, you will need to identify a 30% drop in revenue over a seven-day period after an alert level increase, and meet other eligibility criteria. For the first payment the seven-day period must start on or after 17 August. For the second payment the seven-day period must start on or after 8 September. This drop is compared to a typical seven-day period in the six weeks before the increase in alert level. These revenue amounts must be supplied in your application.
Other subsidies and support remain in place and are unchanged:
- Short term absence payment — for workers who follow public health guidance and are staying home while waiting for a COVID-19 test result.
- Leave Support scheme — for workers who have been told by a health official to self-isolate and cannot work from home
- Small Business Cash Flow Loan Scheme — a loan to small businesses to support cash flow needs
If you require assistance in assessing your entitlement for these schemes or help in applying, please contact us.
All links valid at September 15 2021.
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