Covid-19 Information

If you have been financially impacted by the 2021 COVID-19 alert level changes, there are four types of business support payments that may apply to you, these are outlined below. REMINDER: Your tax agent cannot complete these applications on your behalf as the applications require a legal declaration to be made.

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Wage Subsidy Scheme (WSS)

Resurgence Support Payment (RSP)

Leave Support Scheme (LSS)

Short-term Absence Payment (STAP)

Tax Implications

Important Information

  • You cannot apply for support for the same employee twice
  • You can only apply for employees you haven’t already applied for
  • You cannot get more than one COVID-19 support payment for the same employee at the same time

 

Wage Subsidy Scheme (WSS): Applications Open Now

You must demonstrate a 40% decline in revenue for the relevant 14 day period that relates to each round in comparison to a typical 14-day consecutive period in the six weeks immediately prior to 17 August 2021. This decline in revenue must be a direct result of the change to alert level 4 and can be calculated on an “invoice basis” rather than a “payments basis”. This means the decline in revenue is calculated based on when you would have performed the work, rather than when you have been paid for work. You must keep evidence of this. You can only apply for the next round of Wage subsidy two weeks after your prior round’s application.

First Round:

Revenue Test Period: 17 August 2021 to 30 August 2021

Applications Open: 9am 20 August 2021

Applications Close: 11:59pm Thursday 2 September 2021

Second Round:

Revenue Test Period: 31 August 2021 to 13 September 2021

Applications Open: 9am Friday 3 September 2021

Applications Close: 11:59pm Thursday 16 September 2021

Third Round:

Revenue Test Period: 14 to 27 September 2021

Applications Open: 9am Friday 17 September 2021

Applications Close: 11:59pm 30 September 2021

Fourth Round:

Revenue Test Period: 28 September to 11 October 2021

Applications Open: 9am Friday 1 October 2021

Applications Close: 11:59pm 14 October 2021

Fifth Round:

Revenue Test Period: 12 October 2021 to 25 October 2021

Applications Open: 9am Friday 15 October 2021

Applications Close: 11:59pm 28 October 2021

Apply now.

 

Resurgence Support Payment (RSP): Applications Open Now

A 30% drop in revenue or a 30% decline in capital-raising ability over a 7-day period, in comparison to a typical 7 day period in the six weeks immediately prior to 17 August 2021, which is a direct result of the increased COVID-19 alert level. Once again this can be calculated on an “Invoice Basis” rather than a “Payments Basis”.

First Round:

Revenue Test Period:  7 Day period after 17 August 2021

Applications Open: 8am Tuesday 24 August 2021

Applications Close: One month after all of New Zealand returns to alert level 1.

Second Round:

Revenue Test Period: 7 Day Period after 8 September 2021

Applications Open: 8am Friday 17 September 2021

Applications Close: One month after all of New Zealand returns to alert level 1.

Third Round:

Revenue Test Period: 7 Day Period TBC

Applications Open: 8am Friday 8 October 2021

Applications Close: One month after all of New Zealand returns to alert level 1.

Apply now.

 

Leave Support Scheme (LSS): Applications Open Now

Payment Amount: $585.80 per week for full-time workers (20 hours or more per week) and $350 per week for part-time workers (less than 20 hours per week).This is paid as a two week lump sum.

Eligibility Criteria: This payment applies when you or one or more of your employees must self-isolate on the basis that the employee: has COVID-19, has been identified as a close contact of someone with COVID-19, parent/caregiver of a dependent who has been told to self-isolate, has been directed to self-isolate by a medical officer, is high risk and must self-isolate on doctor’s advice or has household members who are self-isolating as they have been deemed high risk by their doctor. The employee must also not be able to work from home.

Apply now.

 

Short-term Absence Payment (STAP): Applications Open Now.

Payment Amount: One off payment of $350 per eligible worker. Can only be applied for once every 30 days per eligible employee.

Eligibility Criteria: This is for employees who are staying at home while waiting for a COVID-19 test result, parent/caregiver of a dependent who is staying home while waiting for a COVID-19 test result or are a household member/secondary contact of a close contact who is staying at home while waiting for the test result of the close contact.

Apply now.

 

TAX IMPLICATIONS:

Wage Subsidy, Short Term Absence & Leave Support:

GST: This payment is not subject to GST

Income Tax: If you are receiving the wage subsidy for your employees, then that portion of the wage subsidy is not assessable for income tax purposes, however the Wages that you pay with the subsidy will not be deductible for income tax purposes. If you receive the wage subsidy for yourself as a self-employed owner-operator or as a shareholder-employee, then this portion of your wage subsidy payment will be assessable for income tax purposes in your own name.

Resurgence Support Payment:

GST: You must return the GST output tax on any RSP received, however you are able to claim the GST input tax on operating expenditure that was funded by the RSP, if applicable.

Income Tax: The RSP is not assessable for income tax purposes, however any payments made towards operating expenses that were funded by the RSP are not deductible for income tax purposes.

Covid-19 2021 Information
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