Financial support for Omicron: what is available & how to apply
Don't miss out on financial support for businesses during the Omicron outbreak.
This update covers the support options available and how to apply for them. Please keep and refer back to this over the next few weeks as many businesses will need to apply for at least one or two types of support.
COVID-19 support measures available:
COVID Support Payment (CSP)
Leave Support Scheme
Short-Term Absence Payment
Small Business Cashflow Scheme (2 years interest-free + top-up loan)
Extension on tax penalty / interest remittance + more time to pay
Note that businesses must apply themselves for the Leave Support Scheme, Short-Term Absence Payment and the Small Business Covid Loan. Conversely, we are able to apply for the new COVID Support Payment (CSP) on your behalf, as well as dealing with IRD in regards to tax penalty/interest remittance.
We have provided step-by-step instructions on how to apply for each scheme below. Please follow the links provided and do contact us if you have any issues. One of our team will guide you through it.
COVID Support Payment (CSP)
Three fortnightly COVID 19 Support Payments will be made available
Each payment is $4,000, plus $400 for each employee (up to 50 employees)
Businesses will need to apply for each payment
The period of time each CSP will cover are:
For the 1st CSP (open now), businesses will need to show their income is 40% lower in a 7- day period any time between 16 February 2022 and 4 April 2022, compared to a typical week between 5 January and 15 February in either 2021 or 2022.
For the 2nd CSP, businesses will need to show their income is 40% lower in a 7- day period any time between 7 March 2022 and 4 April 2022, compared to a typical week between 5 January and 15 February in either 2021 or 2022.
For the 3rd CSP, businesses will need to show their income is 40% lower in a 7- day period any time between 21 March 2022 and 4 April 2022, compared to a typical week between 5 January and 15 February in either 2021 or 2022.
The option for businesses to compare their income drop to a typical week in 2021 will be available from 14 March.
Please note that applications for all 3 CSPs will close on 5 May 2022.
Kendons is able to apply for the new COVID Support Payment (CSP) on your behalf. Contact us if you think you may be eligible.
Paying employees who have to stay home and cannot work
If your employees have to stay home and cannot work because they have to self-isolate or are waiting on test results for COVID, you can get a payment to help you keep paying them. These payments are called the Leave Support Scheme and the Short-Term Absence Payment.
The Leave Support Scheme
The COVID-19 Leave Support Scheme is available to employers, including self-employed people, to help pay their employees who have been advised to self-isolate because of COVID-19 and can’t work at home during that period. This means your employees:
can't come into work because they are in one of the affected groups and have been told to self-isolate, and
can't work from home.
The COVID-19 Leave Support Scheme is paid at the rate of:
$600.00 a week for full-time workers who were working 20 hours or more a week.
$359 a week for part-time workers who were working less than 20 hours a week.
The Leave Support Scheme is now a weekly payment. It’s been changed from two-weekly to a one-week payment to recognise the periods of self-isolation have changed.
Click here for further information on the Leave Support Scheme.
COVID-19 Short-Term Absence Payment
The COVID-19 Short-Term Absence Payment is available for businesses, including self-employed people, to help pay their employees who cannot work from home while they wait for a COVID-19 test result.
The Short-Term Absence Payment is to help businesses keep paying eligible employees who:
cannot work from home, and
need to miss work to stay home while waiting for a COVID-19 test result (in line with public health guidance)
There is a one-off payment of $359 for each eligible worker. You can only apply for it once, for each eligible employee, in any 30-day period (unless a health official or doctor tells the employee to get another test).
Click here for further information on the Short Term Absence Payment.
Small Business Cashflow Scheme
If your income was 30% lower recently than it was the year before, you might be able to get a loan from the government Small Business Cashflow Scheme (SBCS).
This could be for up to $10,000, plus $1,800 for each full-time employee up to a maximum of $100,000. This amount will soon increase by $10,000.
You will be able to choose to borrow the whole amount at once, or in up to 4 separate withdrawals taken out before the end of 2023.
Businesses have 5 years to pay it off. The first 2 years will be interest-free, after that the interest rate is 3%.
Changes to existing loans
If you already have a loan some changes are coming by the end of March.
If you have kept to the terms of the existing loan, you will be able to apply for a top-up loan of an additional $10,000.
Plus, if you did not borrow the full amount you were able to in your existing loan, you will be able to add this amount to your top-up loan.
The top-up loan will have a new 5-year repayment period, with the first 2 years being interest-free.
You can borrow the whole amount at once, or in 4 separate withdrawals taken out before the end of 2023.
All SBCS Loans, new and existing, will be interest-free for 2 years, as long as you keep to the terms of the loan.
Click here for more information on the Small Business Loan Scheme.
Extension on tax penalty / interest remittance + more time to pay
If you paid your tax late because you were affected by COVID-19, Inland Revenue can remove the penalties and interest that were charged. This is often done automatically but we can contact the IRD on your behalf if you need to question this. Contact us if you think this applies to your business.
If you are not able to pay your tax on time because of COVID-19, you can pay it off over time. This is called an instalment arrangement. Again, we can help set this up for you with the IRD.
That concludes all of the support currently available to businesses affected by the Omicron outbreak. As always, we will update you with any further changes or support available. Our team is here to support you to apply for any of the support measures available, either directly or to guide you to apply for yourself.
Please get in touch, give us a call or contact your Kendons accountant or advisor.
