COVID Business Support NZ
The New Zealand Government has announced 3 fortnightly COVID Business Support NZ Payments with the first payment opening for applications at 8 am on 28 February 2022.
The amount of each payment is $4,000, plus $400 for each employee (up to 50 employees). To get the first payment business owners will need to show income is 40% lower in a 7-day period any time from February 16, compared to a typical week between 5 January 2022 and 15 February 2022 or 5 January 2022 and 15 February 2021.
For the second and third payments, the dates where income needs to be lower are still to be decided. More information will be available on the Inland Revenue website.
To be eligible for the CSP a business or organisation must:
- have experienced the revenue decline of 40% or more as a result of 1 or more COVID-19 circumstances (as detailed on the website above)
- have been operating the business or organisation for a period of at least 1 month before 16 February 2022 – if you have acquired a business or organisation after 16 January 2022, you may still be eligible for the CSP
- have taken all reasonably practicable steps (if any) to minimise revenue losses
- been operating in compliance with the COVID-19 Vaccine Certificate requirements (pursuant to COVID-19 Public Health Response (Protection Framework) Order 2021), for both the comparator period and the affected revenue period
- not have received, have an application pending for, or apply for or receive in future, a grant under the Cultural Sector Emergency Relief Fund: Grant for Self- Employed Individuals administered by Manatū Taonga – Ministry for Culture and Heritage (further details on this will be provided soon)
- be living, or (if a non-natural person) registered or otherwise established in New Zealand.
Update: 25 Feb
New Zealand Finance Minister Grant Robertson has just announced changes to the COVID Support Payment (CSP) scheme allowing more Omicron-affected businesses to access financial support.
There will now be two time periods against which affected businesses can compare their current revenue to be eligible for the payment.
The original period of 5 January 2022 to 15 February 2022, and
The new alternative option of 5 January 2021 to 15 February 2021.*
A business is eligible if they can show a 40% or greater drop in a seven day period since 16 February this year compared against a typical seven day period in one of the two timeframes above.
* The alternative option covers a period in 2021 when all of New Zealand was at Alert Level 1.
Inland Revenue is to make the necessary changes to its system to allow applications by businesses under this additional revenue comparison period. This is expected to be completed and available for use from 14 March. Businesses will be able to use this option to apply for each of the three payments.
Businesses can still apply for the CSP using the original criteria announced on Monday, with applications for the first payment open on February 28, with payments starting from March 1.
The first payment will be open for application for at least six weeks, so even if a business is not eligible right now, they may find they become eligible during this six week period.
The change will now allow those businesses which had a very quiet January/early February this year – particularly those in the hospitality sector – who might otherwise not be eligible under the existing criteria of the CSP, to apply.
Full media annoucement: https://www.beehive.govt.nz/release/more-omicron-affected-businesses-able-access-financial-support
