And…
It’s Spring time!
We trust that you and your family are doing well in the past month. With Auckland continueto be in level 4 lockdown for at least another week, hope remains high for some leave of ease for social and business interactions. It is our sincere prayer that you remain high in spirit and health to battle the unexpected.
From 8am this Friday, businesses and organisations will be able to apply for a second Resurgence Support Payment (RSP) for the alert level changes that started on 17 August.Announcement from the Minister of Finance on 10 September Second Resurgence Support Payment announced (ird.govt.nz). This is after the second round of Wages Subsidy which began on the 1st of September 2021. Below are some of the updates from the government for supports offered to businesses.
- The Wage Subsidy Scheme (WSS) Applications for the second payment must be in by 11.59pm Thursday 16 September 2021. Eligible businesses anywhere in the country can apply for the WSS if they expect a loss of 40% of revenue as a result of the Alert Level increaseannounced on 17 August 2021.Employers do not have to have already claimed the first round of payments. Employers who have already claimed the first round of payments can still apply for the second (and subsequent) round of payments.
Eligible businesses will receive $600 per week, per full-time equivalent employee, and $359 per week, per part-time employee. You can find a full breakdown on the Ministry of Social Development website – click here.
- A Resurgence Support Payment (RSP) is availableif firms incur a loss of 30% of revenue as a result of the Alert Level increase. The change for the new RSP though is that a business now only has to have been operating for at least a month before the alert leave increase on 17 August 2021, which was 6 months under the original criteria.
This means that a business may have been operating since 17 July 2021 and may now be eligible for RSP. However other criteria will still require.
- The Leave Support Scheme (LSS) provides a two-week lump sum payment of either $585.80 per week for full-time workers, or $350 per week for part-time workers, who must self-isolate and cannot work from home. More information is available here.
- The Short-Term Absence Payment (STAP)provides a one-off (once per 30 days) $350 payment for workers who must miss work due to a Covid-19 test and cannot work from home. Further information about this payment is available on the MSD website.
Again similar to our previous advice, we strongly recommend that you consider your circumstances carefully and ensure you understand all of the terms and conditions under the eligibility section. Both MSD and IRD can review and/or audit the information provided and may take action in the event that the information provided is false or misleading.
We have experience in particular when applying for RSP which is administered by IRD who requested further information than what normally requires by a standard application, such as historical records to prove trading activities, calculation of reduced revenues, etc.
Please feel free to get in touch with us if you wish to discuss or require assistance with any of the business support mechanisms mentioned above.
We hope you and family stay safe and keep business fit.
Your faithful team at HCCA Chartered Accountants
