The New Zealand Government has released an economic response package to support the nation during the COVID-19 crisis.
The package includes:
1. wage subsidy scheme
2. leave and self-isolation support
3. business cash flow and tax measures
4. wider $12.1 billion package
Wage subsidy scheme
Wage subsidies will be available for all businesses significantly impacted by COVID-19, including employers that are struggling to retain employees, sole traders, self-employed and new and existing businesses.
For any business that can show a 30% decline in revenue for any month between January and June 2020 compared to the year before (including projected revenue), a wage subsidy of $585.80 per week for a full-time employee (20 hrs or more) and $350.00 per week for a part-time employee (less than 20hrs) will be available.
If you would like to find out if you are eligible for a wage subsidy and how to apply for it, please refer to the information on the Work and Income website .
Leave and self-isolation support
Self-isolation is an important way to slow the spread of COVID-19. From 17 March 2020 the COVID-19 Leave Payment will be available to support people financially if they:
1. need to self-isolate
2. can’t work because they are sick with COVID-19
3. can’t work because they are caring for dependents who are required to self-isolate or who are sick with COVID-19.
This payment will be a flat rate of $585.80 for a person working 20 hours or more per week and $350.00 for a person working less than 20 hours per week. Employers receiving the payment for employees who are required to self-isolate can receive it for 14 days. As people may be required to self-isolate more than once, employers will be able to apply for this on an ‘as needed’ basis.
Tax relief and income assistance is also available to people affected by the COVID-19 crisis. The government has announced on 17 March 2020 that it is proposing to give Inland Revenue the ability to write-off the interest they charge for late payments, also known as use-of-money interest (UOMI). This is proposed for payments due on or after 14 February 2020.
There are a number of other options outlined on IRD’s website and our team at Ean Brown Partners are more than happy to discuss the different options with you.
Please touch base with us if you have any questions and we will be glad to assist you.
Disclaimer: Please note this information is up to date in accordance with the posting date and time of this particular blog article. Any further updates released by the government and its associated ministries can be found on https://covid19.govt.nz/ .