COVID SUPPORT PAYMENT
A new targeted COVID Support Payment will be made available for businesses struggling with revenue during the Omicron outbreak.
Each COVID Support Payment will be $4000 per business plus $400 per full-time employee, capped at 50 FTEs or $24,000. This is the same rate as the most recent Transition Payment.
Applications for the first payment open on 28 February, with payments starting from 1 March.
It will be available on a fortnightly basis for six weeks, with three payments in total. This reflects the international experience that the peak of the Omicron outbreak should pass after about six weeks.
Finance Minister Grant Robertson says the Government will continue to closely monitor the situation and has the option to extend the payment if necessary.
Firms must show a 40% drop in 7 consecutive days from within the 6 weeks prior to the shift to Phase 2 of the Omicron response on 15 February, compared to 7 days after that date.
Are you eligible for COVID Support Payment?
TIA's next pulse survey aims to get feedback from tourism and hospitality businesses on eligibility for the new financial support payment announced by the government this week.
TIA will use the data to inform our advocacy on seeking amended criteria other than those currently proposed. Please note any data relating to a particular business will be kept confidential.
This short pulse survey should take less than five minutes to complete. It will close at midday on Friday 25 February.
Take the pulse survey now.
SMALL BUSINESS CASHFLOW LOANS SCHEME
Changes are also being made to the Small Business Cashflow Loans Scheme to increase the amount of funding available to eligible businesses through the introduction of a ‘top up’ loan.
The top up loan will allow those firms that have already accessed a loan to draw down an additional $10,000 with a new repayment period of 5 years and the first 2 years being interest free.
Cabinet has also agreed to remove the first two years of accrued base interest from all borrowers who have, or will, take out a loan under the scheme. This change means interest will only start accruing at the beginning of year 3.
They are also extending the Inland Revenue’s ability to apply flexibility for tax payment dates and terms to assist firms with cashflow pressures.
Any businesses struggling to pay tax because of the impacts of COVID should log on to myIR to see if they can delay starting payments to a later date, or if any part of the tax could be written off. IR can help with both GST and provisional tax due.