GRA Blogs

Articles by Anthony Strevens

Covid Support - March 2021

AUTHOR: Anthony Strevens

POSTED: 03 March 2021

Following the latest changes in alert levels in Auckland and across the country, there are now new government support packages available. These are on top of the support that is already in place such as the Business Finance Guarantee Scheme and Small Business Cash Flow Loan Scheme.

Wages Subsidy

The wages subsidy is back again in a similar format to the previous wages subsidies from 2020. It is designed to help employers and self-employed people to continue to pay employees and protect jobs for businesses that have been affected by the changes in alert levels on 28th February.

To be eligible, your business needs to have suffered a 40% decline in revenue over any 14-day period between 28th February and 21st March 2021 when compared with a ‘typical’ 14-day period between 4th January and 14th February 2021. This subsidy is available to the whole country.

Just like the last payment, there are two different rates depending on whether an employee works more than or less than 20 hours per week. Currently it will be paid for two weeks; however, we’d assume this might change depending on alert level changes in the coming weeks.

You can’t get this subsidy for an employee who is covered by the Leave Support Scheme or Short-Term Absence Payment (see below).

You can apply through the Work and Income website from 4th March and payments start on 8th March.

Resurgence Support Payments

There are now two resurgence support payments available. One for the 14th February alert level increase and one for the 28th February alert level increase.

To be eligible for the payment, your business must have experienced at least a 30% drop in revenue or capital-raising ability over a 7-day period after the increased alert level, and meet other criteria. These payments are available to the whole country.

Eligible businesses can apply to receive the lesser of:

• $1,500 plus $400 per full-time equivalent (FTE) employee, up to a maximum of 50 FTEs; or

• Four times (4x) the actual revenue drop experienced by the business.

Businesses and organisations can apply for the payment each time it is activated, as long as they meet the eligibility criteria.

Applications are open for one month after the return to Alert Level 1 and are made through Inland Revenue via your myIR online account.

Short Term Absence Payment

This is a relatively small payment of $350 per employee to help cover their wages if they need to be tested for Covid-19 and then self-isolate while they await the test results and they cannot work from home. Applications can be made via the Work and Income website.

Leave Support Scheme

If your employee has to self-isolate as a result of being a close contact or being given medical advice to do so and they cannot work from home, then this scheme assists with a lump sum payment which assists for up to a two-week period. Applications can be made via the Work and Income website.

If you have any questions about these payments and schemes or need support in applying, please contact your Client Services Manager at GRA for further assistance: Phone +64 9 522 7955, [email protected] or via our website.

Request a Meeting

Anthony Strevens
Partner

09 522-7955

[email protected]

© Gilligan Rowe & Associates LP

Did you like this article? Subscribe to our newsletter to receive tips, updates and useful information to help you protect your assets and grow your net worth. We're expert accountants providing expert advice to clients in NZ and around the world.

Disclaimer: This article is intended to provide only a summary of the issues associated with the topics covered. It does not purport to be comprehensive nor to provide specific advice. No person should act in reliance on any statement contained within this article without first obtaining specific professional advice. If you require any further information or advice on any matter covered within this article, please contact the author.

Comments

Testimonials

I find Salesh easy to talk to and adds value to any conversation we do have. The staff overall are pleasant to deal with and I don’t have any complaints.
- HM, September 2023

Would you like to receive . .

. . tips, updates and useful information to help
protect your assets and grow your net worth?

Gilligan Rowe and Associates is a chartered accounting firm specialising in property, asset planning, legal structures, taxation and compliance.

We help new, small and medium property investors become long-term successful investors through our education programmes and property portfolio planning advice. With our deep knowledge and experience, we have assisted hundreds of clients build wealth through property investment.

Learn More