14 March 2022

The Government has announced a further round of financial support for businesses impacted by COVID-19. This is targeted at businesses struggling in the red light setting.

New COVID-19 support payment for businesses

  • Each payment will be $4,000 per business plus $400 per full-time employee, capped at 50 full-time staff or $24,000
  • It will be available on a fortnightly basis for six weeks, so three payments in total

    UPDATE 11 March 2022:

  • First Payment – Applications now open (payments starting from 1 March)
    Businesses need to show a 40 per cent revenue drop when comparing a typical 7 day period between 5 January to 15 February 2022, or the same period in 2021, against a continuous 7 day period between 16 February 2022 and 4 April 2022. The changes to the scheme allowing businesses to compare revenue to the start of 2021 will be available for application from 14 March.
  • Second Payment – Applications open on 14 March
    Businesses need to show a 40 per cent revenue drop when comparing a typical 7 day period between 5 January to 15 February 2022, or the same period in 2021, against a continuous 7 day period between 7 March 2022 and 4 April 2022.
  • Third Payment – Applications open on 28 March
    Businesses need to show a 40 per cent revenue drop when comparing a typical 7 day period between 5 January to 15 February 2022, or the same period in 2021, against a continuous 7 day period between 21 March 2022 and 4 April 2022.

Find out more on the IRD website.

Small business cashflow loan scheme changes 

  • Changes are being made to the small business cashflow loan scheme to increase the amount of funding available to eligible businesses through the introduction of a top-up loan
  • The top-up loan would allow businesses that had already accessed a loan to draw down an additional $10,000 with a new repayment period of five years and the first two years interest free
  • The first two years of accrued base interest will be removed for all borrowers who had, or will, take out a loan under the scheme. This change means interest will only start accruing  at the beginning of year three.
  • To avoid interest being charged on either an existing loan or the top-up loan, repayments need to be made from the start of year three, or the loan needs to be repaid in full before then.

Greater tax payment flexibility

  • The Government is extending the IRD’s ability to apply flexibility for tax payment dates and terms to assist firms with cashflow pressures
  • Revenue Minister David Parker said any businesses struggling to pay tax because of the impacts of Covid-19 should log on to myIR to see if they could delay starting payments to a later date, or if any part of the tax could be written off

In addition, the Leave Support Scheme and the Short-Term Absence Payment remain available. The Wage Subsidy and the Resurgence Support Payment are not currently available for businesses.

Leave Support Scheme

The leave support scheme is available to employers, including self-employed people, to help pay staff who have been told to self-isolate because of Covid-19 and can’t work at home.

It is paid at a flat rate of $600 a week for full-time workers who were working 20 hours or more a week, or $359 a week for part-time workers who were working fewer than 20 hours a week.

Find out more on the Work and Income website.

The Short-Term Absence Payment

This is a payment available for businesses and self-employed people to help pay their employees who cannot work from home while they wait for the result of a Covid-19 test. It is paid at $359 per eligible worker.

Find out more on the Work and Income website.

If you have any questions about accessing this relief, please speak to your Nexia advisor or get in touch via our general contact details. 

We will update our website as further details are announced.

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