Business Support Options

Resurgence Support Payment

A Resurgence Support Payment may be activated if the alert level increases from Level 1 for a week or more. Businesses and organisations will be eligible if they experience a 30% drop in revenue over a 7 day period after an alert level increase and meet other eligibility criteria. This drop is compared to a typical 7 day period in the 6 weeks before the increase in alert level. The decline in revenue must be a result of the specific alert level change, not just COVID-19 in general. You must have been in business for at least 6 months to be eligible. Charities, not-for-profit organisations, the self-employed and pre-revenue businesses, such as start-ups, may also be eligible.

This payment is not a loan, so does not need to be repaid. The payment must be used to help cover business expenses such as wages and fixed costs. Applications will remain open for 1 month after the return to Alert Level 1. The current round of applications will close on 23 March 2021.

You can apply through myIR. If your businesses doesn’t have a myIR account, you will need to create one to apply.

More information, including how to apply and how to calculate your drop in revenue — Inland Revenue

myIR — Inland Revenue

Register a myIR account for a business or organisation — Inland Revenue

Wage Subsidy Scheme

The Wage Subsidy Scheme will be available nationwide if any part of the country moves to Alert Level 3 or above for seven days or more. 

Businesses and the self-employed will be eligible if they experience a 40% drop in predicted or actual revenue over a consecutive 14-day period, compared to a typical fortnightly revenue in the six weeks before the rise in alert level. You would need to be able to show that the revenue drop is due to the change in alert level, not just COVID-19 in general.

Financial support plan for businesses if there’s a COVID-19 resurgence —  covid19.govt.nz

Short-Term Absence Payment

A COVID-19 Short-Term Absence Payment is available at all Alert Levels to employers to pay workers who follow public health guidance and are staying home while waiting for a COVID-19 test result. It’s also available to eligible self-employed workers. To be eligible, workers need to be unable to work from home and need to miss work while waiting for the test results.

The payment is $350 for each worker. Employers or the self-employed can apply for any worker once in any 30-day period.

More information and how to apply – Work and Income

Leave Support Scheme

The COVID-19 Leave Support Scheme provides a payment to businesses to pay their workers who meet certain health criteria, eg they have COVID-19. This is also available if you’re self-employed.

If you, or your staff have been told by a health official to self-isolate and cannot work from home, you can apply for the COVID-19 Leave Support Scheme. This support will be paid as a lump sum covering two weeks (you can reapply if required).

Under changes to this scheme in 2020, businesses are no longer be required to show an actual or predicted revenue drop or that their ability to support an employee was negatively impacted by COVID-19, to be eligible to access the payment.

Leave Support Scheme — Work and Income

How to apply for the Leave Support Scheme – Work and Income

Small Business Cash Flow Loan Scheme (SBCS)

Government will provide loans to small businesses, including sole traders and the self-employed, impacted by COVID-19 to support their cash flow needs. Applications have been extended and are now open until 31 December 2023. You can apply through myIR.

The small business cash flow loan scheme will provide assistance of up to $100,000 to businesses employing 50 or fewer full-time employees. This includes sole traders and self-employed businesses.

Details of the loans include:

  • $10,000 to be provided to eligible businesses
  • an additional $1800 per equivalent full-time employee
  • interest free if the loan is paid back within two years
  • an interest rate of 3% for a maximum term of five years
  • repayments not required for the first two years
  • you must show at least a 30% drop in revenue due to Covid-19, measured over a 14-day period in the past 6 months
  • maximum amount you can borrow depends on the number of full-time and part-time employees.

Use the small business cash flow loan scheme eligibility tool and find out how to apply.

COVID-19: Small business cash flow loan scheme eligibility tool

Applications are open until and including 31 December 2023 through myIR. Go to the 'I want to' section, and select 'Apply for the small business loan'.

myIR — Inland Revenue

If your businesses doesn’t have a myIR account, you will need to create one to apply.

Register a myIR account for a business or organisation — Inland Revenue

Most applicants will receive their loan payment in full from Inland Revenue within five working days. You don’t have to accept the full loan amount you’re offered, and can decide to take a smaller loan.

TAX and ACC Support

If you’re having difficulties meeting your tax obligations due to COVID-19, Inland Revenue has various support schemes and options to help.

COVID-19 business and organisations — Inland Revenue

ACC levy invoices for the 20/21 financial year would usually have been sent from 1 July, but will now be sent in October. ACC has more information about delayed invoices and guidance to help.

Easing the COVID-19 burden on businesses — ACC

If you are having trouble making ACC payments, ACC has guidance to help. If you are no longer in business, it’s also a good idea to let ACC know.

General COVID-19 information for businesses — ACC

(SOURCE: www.business.govt.nz)