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Are you ready for Omicron? A guide to business relief measures

Omicron has arrived at last. With community transmission in Auckland and Nelson and signs of a possible widespread outbreak, Prime Minister Jacinda Ardern announced yesterday that all of New Zealand would move to Red under the traffic light protection framework from the early hours of today.

Omicron has arrived at last. With community transmission in Auckland and Nelson and signs of a possible widespread outbreak, Prime Minister Jacinda Ardern announced yesterday that all of New Zealand would move to Red under the traffic light protection framework from the early hours of today. Given the enormous damage Delta inflicted on New Zealand’s economy, every business owner will surely be doing everything possible to prepare for Omicron’s arrival. In this article, YIJU summarises the government support currently available to local businesses during the pandemic.

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Government financial support for businesses

The Government offers various COVID-19 financial support schemes, depending on each business’s circumstances. If employees must self-isolate while awaiting COVID-19 test results, or cannot work from home because they have contracted the virus, government financial support is available to help business owners pay their wages.

 

Short-Term Absence Payment

Employers can receive the Short-Term Absence Payment to pay employees who follow public health guidance to stay home while awaiting coronavirus test results. It is also available to eligible self-employed people. To qualify, employees must be unable to attend work or work from home while awaiting their results.

 

Payment amount

A one-off cash payment of NZ$359 is available for each eligible employee. Business owners and self-employed people can apply only once for any employee within any 30-day period, unless a health official or doctor requires that employee to take another coronavirus test.

 

How to apply

You can apply through the Inland Revenue website. For more information and eligibility requirements, visit: https://www.workandincome.govt.nz/covid-19/short-term-absence-payment/

 

Leave Support Scheme

The Leave Support Scheme helps employers pay the wages of employees who have been advised to self-isolate because of a coronavirus infection and cannot work from home. It is also available to eligible self-employed people.

 

Payment amount

The Government provides a weekly payment of NZ$600 for each full-time employee and NZ$359 for each part-time employee.

 

How to apply

You can apply through the Inland Revenue website. For more information and eligibility requirements, visit: https://www.workandincome.govt.nz/covid-19/leave-support-scheme/index.html

 

Small Business Cashflow Loan Scheme (SBCS)

Under the Small Business Cashflow Loan Scheme, the Government provides loans to small businesses affected by this wave of the pandemic, including sole traders and self-employed people, to support their operating cash flow needs. If you previously applied under the SBCB scheme and have fully repaid the loan, you can apply again. Applications close on 31 December 2023. Apply through myIR.

 

Loan amounts available

The Small Business Cashflow Loan Scheme provides loans of up to NZ$100,000 to businesses employing 50 or fewer full-time employees, including sole traders and self-employed businesses. Eligible businesses can borrow NZ$10,000, plus NZ$1800 for each full-time employee. No interest is charged if the loan is repaid within two years; otherwise, the interest rate is 3%, with a maximum term of 5 years and no repayments required for the first two years. To qualify, you must demonstrate that, because of COVID-19, revenue fell by at least 30% over a 14-day period within the past 6 months, compared with the same 14-day period a year earlier. If revenue in that period a year earlier was also affected by COVID-19, compare it with the corresponding 14-day period two years earlier. The maximum amount you can borrow depends on the number of full-time and part-time employees. Employers can use the Small Business Cashflow Loan Scheme eligibility tool to find out how to apply.

 

Small Business Cashflow Loan Scheme eligibility tool

Most applicants will receive the full loan payment from Inland Revenue within five working days. Once your loan is approved, you do not have to accept the full amount offered: you can choose a smaller loan to suit your business’s needs. For further application details, visit the Inland Revenue website:

https://www.ird.govt.nz/covid-19/business-and-organisations/sbcs

 

Financial support tool

To find out what other financial assistance you may be eligible for, try the financial support tool on the Unite against Covid website. It asks a series of questions about your circumstances, including:

Your employment status / your income / whether your business has experienced reduced activity because of the pandemic

For more information about the financial support tool, visit: https://covid19.govt.nz/traffic-lights/resources-for-businesses/covid-19-financial-support-tool-2/

 

“Activate Auckland — Activate Tāmaki Makaurau”

Support programme

 

Through the business support programme ‘Activate Tāmaki Makaurau—Activate Auckland’ (ATM), the New Zealand Government will provide NZ$60,000,000 to help businesses reduce the impact of the pandemic, build resilience for the future and progress their business development plans. As part of this support programme, the ATM community website https://activatecommunity.co.nz/ is now open free of charge to all employers, businesses and institutions. After a few simple registration steps, you can access useful information, checklists, pandemic workplace guides and basic business planning tools. These are designed to help Auckland’s small and medium-sized businesses navigate the problems and difficulties they face during the pandemic and regain their former vitality as soon as possible.

The community website contains a wealth of information and is continually updated. Here are some of its most frequently viewed topics:

 

  • How to develop a business continuity plan
  • How to access advice through the business advice helpline
  • How to develop a COVID-19 contingency plan
  • How to get vaccinated under the COVID-19 Protection Framework
  • How to travel for business under different lockdown levels
  • How to plan your business
  • How to develop your company’s vision and values
  • How to develop an emergency response plan
  • How to manage cash flow during the pandemic
  • How to control labour costs during the pandemic
  • A guide to operating a hospitality business at Red
  • How to find work and recruit employees
  • How to rebuild your customer base and rethink your business channels
  • Essential information for exporters during the pandemic

 

These are among the many popular topics available, including some official government information in Chinese.

 

In the face of such adversity, YIJU New Zealand calls on the Chinese community to unite more closely and actively to overcome these difficult times together. YIJU is keen to establish strategic partnerships with Chinese business organisations and business owners across New Zealand, using the strengths of its platform to support more local small and medium-sized businesses struggling through the pandemic. If your New Zealand business is facing unprecedented operating difficulties because of the pandemic and you would like to discuss what government support you could apply for under Activate Tāmaki Makaurau, please contact YIJU.

 

Please contact

Lilly Deng

info@yiju.co.nz

 

For further information, visit the Activate Tāmaki Makaurau website: https://www.aucklandnz.com/activateauckland?gclid=Cj0KCQiA5OuNBhCRARIsACgaiqV45gPsn2g4MkGGSE0yPdJZbYMpNPQbZJrcpEZEIhSf1asi5-OQTc4aAiLmEALw_wcB