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COVID-19 Support

Given that Auckland has moved back to Level 3, we thought it would be timely to remind everyone of the support packages available for any business that might be struggling due to COVID-19.

Resurgence Support Payment

The Government recently introduced a new support package for businesses affected by an increase in the COVID-19 risk levels.

What is it?

You can apply to receive support that is equal to one of the below – whichever works out as the lowest amount.
- $1,500 plus $400 per full time employee (up to 50 employees)
- Four times the actual revenue drop

The payments are considered a grant and if a business is GST registered then GST needs to be returned on the payment. The grants are not subject to Income Tax, however any business expenditure funded by the grant is non-deductible.

Who is it for?

The support is currently available to any business that has experienced at least a 30% decline in revenue over a 7 day period compared to a typical 7 day period within the last 6 weeks prior to an increase from alert level 1.

How to apply

The scheme is being administered by Inland Revenue and you can apply through MyIR.

More Information

More information can be found on the IRD website: Resurgence Support Payment

Small Business Cashflow Loan Scheme

What is it?

This is a loan from IRD of $10,000 plus $1,800 per full time employee, up to a maximum of $100,000.

You have 5 years to repay the loan and there are no fixed repayment amounts for the first 2 years.

The loan has a 3% interest rate, however if you repay in full within 2 years you will not be charged any interest.

Who is it for?

This is available to any business that has a 30% decline in revenue over a 14 day period compared to the same 14 days a year ago.

How to apply

You can apply for the loan through MyIR.

More Information

More information can be found on the IRD website: COVID-19 Small Business Cashflow (Loan) Scheme (SBCS)

Leave Support and Short-Term Absence Payment

There are currently two support options available through the Ministry of Social Development.

The Leave Support Scheme

The Leave Support Scheme is available if you have employees that need to self isolate and cannot work from home. The scheme covers two weeks for eligible employees and is paid at a rate of $1,176 for full time and $700 for part time employees.

The Short-Term Absence

The Short-Term Absence payment is available for employees that need to stay away from work while waiting on an COVID-19 test result and cannot work from home. This is a one-off payment of $350 per eligible employee.

More Information

More information on the MSD support can be found here: COVID-19 financial support for businesses

In addition, it is possible that the Government may come out with a new wage subsidy, depending on how long Auckland remains at Level 3. We will update you as we learn more.

We're here to help

As always if you need any assistance please get in touch with your usual Campbell Tyson advisor or call our helpdesk on 0800 883 718.

Stay safe everyone.