As we are all trying to get back to our ‘normal’ and get our business going again, I thought it was timely to give you an update on all things Covid and make sure you have the links to get up to date and accurate information.
Wage Subsidy Extension
You can no longer apply for the wage subsidy but may be entitled to apply for the wage subsidy extension from 10 June to 1 September 2020, provided you meet certain criteria. This subsidy is for the same rates as the original wage subsidy i.e. $585.80 for a full time or $350.00 for a part time employee per week, but is for 8 weeks rather than the 12 weeks of the initial wage subsidy.
Criteria for eligibility:
- You can not apply for the wage subsidy extension for an employee until their 12-week wage subsidy has finished so need to wait until those payments are finished before applying for the extension
- You can apply for the wage subsidy extension for an employee even if you didn’t apply for the wage subsidy for them initially
- You must be an eligible employer with your business in NZ and your employees must be legally working in NZ
- You must have a minimum 40% decline in revenue for a 30-day period, in the 40 days before applying
- You must retain the employees you’re applying for
Full details about the subsidy, who can apply and how to apply can be found on the Government’s Work & Income website
Small Business Cashflow Loan Scheme
The Small Business Cashflow (loan) Scheme has been extended for a further six weeks and so can now be submitted up to and including 24 July 20. This is for businesses with 50 or fewer full-time equivalent employees and is a one-off loan. The maximum loan amount is $10,000 plus $1,800 per full time equivalent employee. Further details for this loan are available on the IRD website here
Individuals and Families
There are a number of updates available around support for families, details if you’re having difficulty making your Kiwisaver contributions or student loans and additionally information around specific income tax issues Further details for these are available on the IRD website here
Depreciation and low-value assets
There are several updates that took effect back in March & April that were designed to help out with cash flow and also to encourage spending. Some of these seem to have been missed by quite a few people during all the Covid madness. The main ones are as follows but again further details are available on the IRD website.
- Providing your business is eligible you will be able to claim depreciation for commercial and industrial buildings. These rates are 2% DV or 1.5% SL
- The low-value asset threshold for depreciation has increased from $500 to $5,000 for all assets purchased between 17 March 20 through to 16 March 21. This will then decrease to $1,000 from 17 March 21 on. This means that any assets up to $5,000 purchased until then will be expensed rather than capitalised and depreciated.
If you need assistance deciding whether any of these relate to you and your business please either give us a call on 04 2329199 or drop us a message by filling out your details below and we will be in touch. We are here to help you get back on track.
