New COVID-19 Financial Support

Below is an overview of the support that was announced from Wellington yesterday.

01.
New targeted COVID Support Payment for most affected businesses

• A new Covid Support Payment of a maximum of $24,000 will be made available for businesses struggling with a business downturn during the red light setting and the Omicron outbreak.
  
• Each payment is $4000 per business plus $400 per full-time employee. It will be capped at 50 FTEs or $24,000. Businesses have to show a 40 percent drop in 7 consecutive days within the 6 weeks prior to the shift to Phase 2 of the Omicron response on February 15.
  
• Businesses can apply for the first payment from February 28th and payments start from March 1. It is available on a fortnightly basis for six weeks – three payments in total. This may be reviewed/ extended.
  

02.
Top up loan available under the Small Business Cashflow Loans Scheme

• Business Cashflow Loans Scheme is being extended, allowing businesses that have already accessed it an extra $10,000. A new repayment period of 5 years, with the first 2 years being interest-free. Also interest already accrued from businesses accessing the scheme will be waived for the first 2 years of the loan.

03.
Flexibility on tax payment terms extended by Inland Revenue

• IRD will allow businesses to be flexible in their tax payment dates and terms. Businesses struggling to pay tax because of Covid-19 should access their myIR account to see if they could delay starting payments, or if any part of the tax could be written off.

For further information click here and from the IRD click here.

If you have any further questions please email us.