Home > Updates > Update: Government COVID-19 support for businesses
A new round of Government support was triggered following the announcement on 17 August 2021 that New Zealand would enter Alert Level 4 from 11:59pm in order to combat COVID-19 in the community.
Below we summarise the Government’s assistance available to businesses and workers.
Eligible employers anywhere in the country can apply for the WSS if they expect a loss of 40 percent of revenue as a result of the Alert Level increase announced on 17 August 2021.
The Wage Subsidy August 2021 is paid as a two-week lump sum. The first round opened on 20 August 2021 and has now closed, as has the second round which was open between 3-16 September. Applications for the third round, Wage Subsidy August 2021 #3, opened at 9am on Friday 17 September and will remain open until 11.59pm on Thursday 30 September. The revenue test period for Wage Subsidy #3 is 14-27 September 2021.
The WSS rates have been increased to reflect the increase in wage costs since the scheme was first used in March 2020. Businesses will be eligible for $600 per week per full-time equivalent employee, and $359 per week per part-time employee. Further information is available in our detailed article or here: workandincome.govt.nz/covid-19/wage-subsidy
Following the Alert Level increase announced on 17 August 2021, the first round of RSP funding opened on 24 August. Applications for a second round of the RSP opened at 8am on Friday, 17 September. To apply for this, businesses need to show a 30% or more drop in revenue in a 7-day period from 8 September until immediately before all of NZ returns to Alert Level 1 compared to a typical 7-day period in the 6 weeks before 17 August.
The payment is capped at the lesser of $1,500 plus $400 per full-time equivalent (FTE) employee up to a maximum of 50 FTEs, or four times the amount the applicant’s revenue has dropped over the 7-day period. For example, if a business has 3 FTEs (which would be $2,700), but revenue drop for the business was only $500, the RSP payment would be limited to $2,000 (being four times the drop in revenue).
Businesses and organisations will be able to apply for the second payment even if they have received the first payment. Applications for both payments will remain open until one month after the whole of New Zealand returns to Alert Level 1.
Further information is available in our detailed article and here: ird.govt.nz/covid-19/business-and-organisations/resurgence-support-payment
The LSS provides a two-week lump sum payment of either $585.80 per week for full-time workers, or $350 per week for part-time workers, who must self-isolate and cannot work from home. More information is available here: workandincome.govt.nz/covid-19/leave-support-scheme
The STAP provides a one-off (once per 30 days) $350 payment for workers who must miss work due to a COVID-19 test and cannot work from home. Further information is available here: workandincome.govt.nz/covid-19/short-term-absence-payment
Please get in touch if you require any assistance on the above: www.nexia.co.nz/contact-us