Government announces new financial support for businesses impacted by Omicron
23 February 2022
During Monday's post cabinet press conference Hon Grant Robertson announced new financial support for businesses affected by Omicron.
The announcement of further financial support was a welcome one, however, the laser-like focus on eligibility relying on a revenue drop from Phase 1 to Phase 2 of the Red Traffic Light system means most clubs won’t qualify as they have been struggling well before Phase 2 of the Traffic Light system was introduced.
Clubs New Zealand intends to communicate our concerns around the eligibility criteria to Hon Grant Robertson and we would appreciate your assistance in completing the below linked rapid fire survey. The survey is made up of 4 quick and will be open until close of business Monday 28 February.
COMPLETE THE RAPID FIRE SURVEY NOW
What you need to know
COVID Support Payment
- Each COVID Support Payment will be $4000 per business plus $400 per full-time employee, capped at 50 FTEs or $24,000, this is the same rate as the most recent Transition Payment.
- Applications for the first payment open on February 28, with payments starting from March 1.
- It will be available on a fortnightly basis for six weeks or three payments in total (the option to extend the scheme if needed)
- Businesses must show a 40 percent 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.
Small Business Cashflow Loans Scheme
- Changes were being made to the Small Business Cashflow Loans Scheme to increase the amount of funding available to eligible businesses through the introduction of a “top up” loan.
- The top up loan will allow those firms that have already accessed a loan to draw down an additional $10,000 with a new repayment period of five years and the first two years being interest free.
- Cabinet has also agreed to remove the first two years of accrued base interest from all borrowers who have, or will, take out a loan under the scheme. This change will mean interest will only start accruing at the beginning of year three.
It has also been confirmed that the Commissioner of Inland Revenue will have their ability to apply flexibility for tax payment dates and terms to assist firms with cashflow pressures.
We expect further details of these support payments and schemes to be released very shortly and we will share applicable links and details as they are made available.
