COVID-19: Omicron Outbreak Financial Support

Covid-19 Business Support Update

The government has announced new financial support for businesses affected by the Omicron outbreak:

  • New Covid Support Payment
  • Top Up Loan available under the Small Business Cashflow Loans Scheme
  • Flexibility on tax payment terms extended by Inland Revenue
COVID Support Payment

The support will be available on a fortnightly basis for 6 weeks (3 payments in total) with applications for the first payment opening on 28 February (payments starting on 1 March).

Each Payment will be $4000 per business plus $400 per full-time employee, capped at 50 employees or $24,000.

The Eligibility criteria requires a business to show a 40% revenue drop in seven consecutive days within the six weeks prior to the shift to Phase 2 of the Omicron response on February 15, compared to seven days after that date.

For the first payment, the affected revenue period is from 16 February 2022 to 4 April 2022.

The affected revenue period for the second payment is 7 March 2022 to 4 April 2022.

The affected revenue period for the third payment is 21 March 2022 to 4 April 2022.

To work out a drop in revenue, you compare the revenue in an affected revenue period to the revenue earned in the comparison period (5 January 2022 to 15 February 2022). If you are a business with highly seasonal revenue, you may select a 7- day comparison period which is before 5 January 2022 and which may be from a past year, which reflects your typical revenue.

The Minister of Finance has announced changes to the period that can be used to calculate a revenue drop. He said businesses would also have the option of comparing their revenue to the revenue earned in a comparison period of 5 January 2021 to 15 February 2021. This option is not yet available, but we will update this page to let you know when it is available.

The Minister of Finance also announced that the first payment will be open for at least 6 weeks.  Read more

Leave Support Scheme

The leave support scheme is available to Employers and Self Employed people who are required to self-isolate and cannot work from home.  Read More

Short Term Absence Payment

The Short Term Absence Payment is available to Employers and Self Employed people who cannot work from home while awaiting a Covid-19 test result.  Read More

Small Business Cashflow Loan Scheme

Changes are being made to increase the amount of funding available through the introduction of a $10,000 ‘top up’ loan. The repayment period has been increased to five years, with the first two years being interest free. These changes will also apply to who have previously taken out a loan through the scheme.  Read More

Inland Revenue – Tax Payment Relief

Businesses struggling to pay tax can contact Inland Revenue to check if they can delay starting payments to a later date, or if any part of the tax could be written off.  Read More

Checking your Revenue Drop in Xero

Xero have a very handy report available to compare your revenue drop over custom periods which makes it very easy to check if you’re eligible for the latest Covid Support Payment. Check out this step-by-step guide we have developed:

How to Check your Revenue Drop in Xero

 

If you liked this article and want to work with an efficient and helpful accountant, lets chat!

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