3 Feb 2022
New COVID-19 Financial Support
Below is an overview of the support that was announced from Wellington yesterday.
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.
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.
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.
1 / Small Business