The government is extending three forms of financial support to businesses that have been heavily affected by recent Omicron outbreak. They are:
- Further COVID-19 support payment
- Top-up loan of NZD10,000 via the Small Business Cashflow Scheme
- Further flexibility on tax payment
COVID-19 support payments
Your business may be eligible if revenue has been affected by Phase 2 of the COVID-19 response. Here’s more information:
- At this stage, there are three fortnightly payments over 6 weeks, which will offer NZD4,000 per business plus NZD400 per full time worker, capped at 50 full time employees. Hence, a maximum of NZD24,000 will be made available for the business.
- To be eligible, businesses will have to show a 40% drop in revenue for seven days in a row after 15 February compared with a seven day period in the six weeks prior to that date.
- Applications will open from 28 February, with payments starting from 1 March.
- Inland Revenue will update its website in the coming days to enable applications to be made.
Small Business Cashflow Scheme Top-up
There will also be an extension of the existing Small Business Cashflow Loans Scheme. Here’s more information:
- Businesses that have already accessed a loan can draw down an additional NZD10,000, with a new repayment period of five years. The first two years will be interest free.
- Existing borrowers under the scheme will also have the first two years’ interest waived on the initial loan.
- If your business has yet to access this loan, applications are open until 31 December 2023. If you are eligible, the loan will be interest free for two years.
- The eligibility criteria are the same as earlier round, you can find details here
Further flexibility on tax payments
Inland Revenue continues to apply flexibility for GST and income tax payment dates and terms to assist businesses with cashflow pressures due to the effects from COVID.
You can login to myIR to see if you can delay starting payments to a later date or if any part of your tax could be written off.
In addition, Inland Revenue may consider writing off interest and penalties charged for late returns and payments if the only reason for the lateness is COVID related. This can include cashflow impacts resulting from government restrictions.
If you need assistance with the above, feel free to contact us here. We are offering free consultation for new clients to discuss their situation and how we can add value and assist. Visit “Cashflow, reporting and budgeting” and “Income tax, GST, PAYE and FBT return” pages for more information.
DISCLAIMER: Our team is dedicated to helping you continue with business as usual, as much as you can. Information on government help is changing constantly and within hours of articles being added, the specifics may be out of date or only partially accurate. While we endeavor to keep this website accurate and current, our top priority is providing our clients with dedicated and relevant personal advice. If you need specific and up-to-date information, please seek help from your usual advisor directly.
No liability is assumed by NZ International Tax & Property Advisors Ltd for any losses suffered by any person relying directly or indirectly upon any article within this website. It is recommended that you consult your advisor before acting on this information.
