Applications for the first COVID Support Payment are now open. If you meet the eligibility criteria, you can apply now at ird.govt.nz/csp.
You may be aware that through the association’s efforts the government are making changes to the eligibility criteria comparison period, however, this isn’t in force yet, and current applications can only be made under the original set of rules. The changes still need to go through the process of becoming law and will need IRD to update systems for it as well.
The government has indicated that the law and system changes will be in effect by 14 March, and all 3 payments will be available to claim for using the new dates for at least 6 weeks.
Other Finacial Support Available
- to help pay employees who have been advised to self-isolate because of COVID-19 and can’t work at home during that period.
- $600.00 a week for full-time workers / $359 for part-time workers
Short-Term Absence Payment (STAP)
- to help pay employees who cannot work from home while they wait for a COVID-19 test result.
- one-off payment of $359
The Small Business Cashflow Scheme (SBCS)
- Applications are open until 31 December 2023.
- From end of March, the amount that can be borrowed is $20,000 (increased from $10,000), plus $1,800 per full-time equivalent employee (up to 50 employees).
- The loan repayment period is 5 years (60 months).
- The first 2 years of existing loans will be interest-free provided the loan is not in default. Interest will apply at a rate of 3% per year on the remaining loan balance from the first day of the third year of the loan period.
- Find out more here.
IRD support
- The ability for IRD to apply flexibility for tax payment dates and terms to assist firms with cashflow pressures has been extended. Businesses struggling to pay tax because of impacts of COVID can potentially delay starting payments, or write off.
- You should contact Inland Revenue as soon as you know you will not be able to pay your tax on time.
- Penalties and interest can be remitted for tax payments due on or after 14 February 2020 up until 24 March 2022 (including provisional tax). This will soon be extended to 7 April 2024.
- Set up an instalment arrangement in your myIR account at ird.govt.nz. Select the ‘I want to’ link, then ‘Request an instalment arrangement’. Also tick the box to say your business has been affected by COVID-19. Doing this confirms that a customer is letting Inland Revenue know as soon as they reasonably can that they cannot pay on time because they are adversely affected by COVID-19. It also confirms they will pay the original amount as soon as they reasonably can.
- Find out more here.