COVID-19 Support - 2022

Following the change to the traffic light framework, the relief available to businesses and the self-employed has also changed. The wage subsidy and resurgence support schemes have now ended.
See below for more details on what is available and how to apply.

Short Term Absence Payment

The Covid-19 Short Term Absence payment is available to both employers (for their employees) and self employed people who:

  • are isolating at home while awaiting a Covid-19 test result, and;

  • cannot work from home

Parents and caregivers who need to miss work to support their dependents who are awaiting a test result are also eligible. You can also apply if you are a household member or secondary contact of someone who is a close contact of a person with Covid-19 and has been advised to stay at home while waiting for the close contact’s test results.

This is a one off payment of $359 for each eligible worker. You can apply for this payment once in a 30 day period (for the same employee/yourself) unless a health official or doctor tells the employee/you to get another test.

Apply for the Short Term Absence Payment here.

Paying staff/tax treatment: there is no GST payable on the Short Term Absence payment. The amount of $359 is the gross payment before tax is deducted. For payments to employees you will need to deduct the usual PAYE from the $359 and pay them the net amount remaining. Example: gross earnings $359, PAYE on this amount for tax code M is deducted ($48.96), employee is paid $310.04. For self employed people, the full amount of $359 will be included in your income tax return and tax on this will be paid after the end of the tax year.

Leave Support Scheme

The Leave Support Scheme is available to both employers (for their employees) and self employed people who:

  • can’t come into work due to being advised to self isolate for four or more consecutive days for one of the below reasons (and cannot work from home);

    • they have Covid-19

    • they are a close contact of a person who has Covid-19

    • they are the parent or caregiver of a dependent who has been advised to self isolate

    • they are in the category of people most at risk of severe illness from Covid-19

    • they have household members in the category of those most at risk of severe illness from Covid-19

The employee/self employed person must have been advised to self isolate by any one of the following:

  • Ministry of Health or a public health unit

  • a medical officer (eg. your GP or a doctor at the hospital)

  • The National Investigation and Tracing Centre

The Leave Support Scheme cannot be paid for employees/self employed people who:

  • are a household member or secondary contact of a person who has been described as a close contact of a person who has Covid-19 (apply for the Short Term Absence Payment instead)

  • are casual contacts of someone who has Covid-19

  • are sick with Covid-19-like symptoms and are staying home while waiting for a test result (apply for the Short Term Absence Payment instead)

  • have returned from overseas and must self isolate in MIQ or elsewhere for a period of time

  • are already getting the Short Term Absence Payment for the same period

The Leave Support Scheme is paid as a weekly payment per eligible employee for a period of at least four consecutive days of self isolation. If an employee needs to isolate for at least 11 calendar days or more, you can apply for a second weekly payment. Third and subsequent payments can be applied for every further seven days of isolation.

The weekly payment is a flat rate of:

  • $600 a week for full time workers (20 hours or more a week)

  • $359 a week for part time workers (less than 20 hours a week)

You can apply for the Leave Support Scheme payment here.

Paying staff/tax treatment: there is no GST payable on the Leave Support Scheme payment. The amount of $600/$359 is the gross payment before tax is deducted. For payments to employees you will need to deduct the usual PAYE from this amount and pay them the net amount remaining. Example: gross earnings $359, PAYE on this amount for tax code M is deducted ($48.96), employee is paid $310.04. For self employed people, the full amount will be included in your income tax return and tax on this will be paid after the end of the tax year.

You must try your hardest to pay the employee named in your application their normal wages, or at least 80% of their usual pay. If that isn't possible, you need to pay at least the Leave Support Scheme payment rate (ie, full-time or part-time).

If you can't pay your employees their usual wages, then any reduction in wages or agreed hours of work requires good faith consultation and written agreement in line with existing employment law.

If your employee's usual wages are less than the Leave Support Scheme, you must pay them their usual wages. Any difference should be used for the wages of other affected staff - the Leave Support Scheme is designed to keep your employees connected to you.

Small Business Cashflow Scheme

The Small Business Cashflow Scheme has been extended until December 2023. For more information on this, click here.