COVID-19 Support - March 2022

A new Covid-19 support payment is available for businesses struggling with revenue during the Omicron outbreak. This is a targeted payment with a higher threshold of lost revenue to support those most affected.

Covid-19 Support Payment (CSP)

The new support payment is available to businesses who:

  • show a 40% drop in revenue over a 7 day consecutive period after February 15 (Phase 2 response initiated) compared to a 7 day period in the 6 weeks prior to February 15

  • the revenue drop is attributed to one or more of the following Covid-19 circumstances:

    • the widespread presence of Covid-19 in the community

    • the legislative public health measures taken in order to reduce the spread of Covid-19

    • any business circumstances that are, or are reasonably likely to be, a consequence of the circumstances described above

  • the circumstances include but are not limited to:

    • businesses not being able to operate at usual levels due to staff isolating

    • business impacted by NZ supply chain disruptions

    • lower retail and recreation movements in a region (eg. CBD) due to people working from home or isolating

    • they do not include circumstances where businesses are able to operate under Red settings but have chosen to close temporarily without taking all reasonable steps to minimise revenue losses

Each support payment will be $4,000 per business plus $400 per full time employee (FTE), capped at 50 FTE’s or $24,000. Businesses with low revenue will be capped at 8 times their actual decline in revenue.

The payment will be available on a fortnightly basis for 6 weeks, with 3 payments available in total.

Applications for this support payment open on 28 February, with payments starting from March 1.

See more info here.

Eligibility Criteria (CSP)

To be eligible for the CSP a business or organisation must:

  • have experienced the 40% or more decline in revenue as a result of one or more Covid-19 circumstances as above

  • have been operating for at least 1 month prior to 16 February 2022

  • have taken all reasonably practicable steps to minimise revenue losses (for example a restaurant may choose to offer dinner service only instead of the usual all day dining if patronage is low. Closing completely would mean that the restaurant would not be eligible for the CSP as they have not explored different hours and methods of operation to minimise losses)

Applicants will not be eligible for the CSP where they:

  • have not taken all reasonable steps to minimise revenue losses

  • are a regulated business under the Covid Protection Framework and are not complying with the vaccine certificate requirements

Tax Treatment (CSP)

  • The payment must be used to cover business expenses.

  • CSP payments are not included in your income tax return at the end of the year. You are also not entitled to claim a tax deduction for these expenses at the end of the year.

  • If you’re GST registered, GST must be paid on the CSP payment. You can also claim GST on expenses covered by the CSP payment.

Small Business Cashflow Loan Scheme

Changes are being made to the Small Business Cashflow Loan Scheme to increase the amount of funding available to eligible businesses by way of a “top up” loan.

The top up loan will allow businesses that have already accessed a loan to draw down an additional $10,000 with a new repayment period of 5 years and the first 2 years being interest free.

The accrued base interest from all borrowers who have or will take out a loan under the scheme will be removed. This means that interest will only start accruing at the start of year 3. The loan repayment period remains 5 years.

Find out more here.