The IRD have informed us of the following changes to the financial support for businesses as we go into the new Covid Protection Framework (The Traffic Light system), on December 3.
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A one-off Transition Payment will be available to acknowledge the restrictions businesses have faced due to the higher Alert Levels in Auckland, Waikato and Northland. This payment operates in the same way as the Resurgence Support Payments (RSP), with the same criteria. Businesses and organisations with reduced income between 3 October and 9 November may be eligible. Applications will open in myIR on 10 December.
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There are no additional rounds of the Wage Subsidy or Resurgence Support Payment planned.
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There will be a change to the RSP eligibility criteria to allow existing businesses that changed ownership on or after July 18 to receive the payments. This will come into effect from December 10.
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The Leave Support Payment will change to a weekly payment (rather than fortnightly).
This means the following financial support is available to businesses and self-employed.
There are six Resurgence Support Payments currently open for applications. In each case a business or organisation must show reduction in income in a consecutive seven-day period within the ‘affected revenue period’. The income during this seven-day period must be at least 30% lower than a normal seven-days of income during the six weeks prior to 17 August. (Apply through myIR)
Here is the Chart of RSP payments
|
Period |
Amount |
Final day to apply |
|
17 Aug to 1 Nov 2021 |
Up to $1,500 + $400 per FTE |
1 December 2021 |
|
8 Sep to 1 Nov 2021 |
Up to $1,500 + $400 per FTE |
1 December 2021 |
|
1 Oct to 1 Nov 2021 |
Up to $1,500 + $400 per FTE |
1 December 2021 |
|
22 Oct to 1 Dec 2021 |
Up to $1,500 + $400 per FTE |
13 January 2022 |
|
5 Nov to 1 Dec 2021 |
Up to $3,000 + $800 per FTE |
13 January 2022 |
|
19 Nov to 1 Dec 2021 |
Up to $3,000 + $800 per FTE |
13 January 2022 |
The one-off Transition Payment is open for applications in myIR on December 10. It operates in exactly the same way as a Resurgence Support Payment, with the following details.
|
Period |
Amount |
Final day to apply |
|
3 October to 9 Nov 2021 |
Up to $4,000 + $400 per FTE |
13 January 2022 |
From December 10, the final RSP payments and the Transition Payment will become available to businesses that have changed ownership on or after July 18. The business must be carrying on the same or similar activity as before the change in ownership.
There are no more Resurgence Support Payments planned.
Wage Subsidy
The eighth round of the Wage Subsidy is still open for applications at www.workandincome.govt.nz. The last day to apply is 9 December. There are no more Wage Subsidy rounds planned.
Short-term Absence Payment and Leave Support Scheme
The Short-term Absence Payment and Leave Support Schemes remain available to help pay employees who are required to stay home to await test results or are required to self-isolate, where those employees are unable to work from home. Applications can be made at www.workandincome.govt.nz. The Leave Support Scheme will change to be a weekly payment - further details will be found on that website in due course.
Small-Business Cashflow (Loan) scheme
Applications for the Small-Business Cashflow (Loan) scheme remain open until 31 December 2023.
www.ird.govt.nz
