Newsletter – 22 February 2022

New COVID Support Payment is here:
A new COVID Support Payment is here.  It will be a sum of $4000 per business plus $400 per full-time employee.  This amount will be capped at 50 full-time employees or $24,000.

Applications for the first payment open on 28th February 2022, with payments starting on 1st March 2022.

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

To be eligible, businesses will have to show:

  • a drop of 40% of revenue (turnover)
  • over 7 consecutive days within the 6 weeks from 5 January prior to the shift to Phase 2 of the Omicron response on February 15, compared to 7 consecutive days after that date.
  • Businesses that are not eligible for the first COVID Support Payment may qualify for the 2nd or 3rd payment.

We are happy to assist you to work out if your business is eligible.  If you would like us to do this, will you send us a list of business sales from 5 January 2022 to yesterday, 21 February 2022.  If you are using Xero, and we have access, just let us know if you would like us to look at this, and we will be able to do so directly, provided your Xero is up to date.


Small Business Cashflow Loan Scheme changes:
The Government are introducing a “top-up” loan of $10,000.

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.  This change means interest will only start accruing at the beginning of year 3, for this loan.

Flexibility with payment dates:
The Government is also extending the Commissioner of Inland Revenue’s ability to apply flexibility for tax payment dates and terms to assist firms with cashflow pressures.  Details are still to be advised.

Any businesses struggling to pay tax because of the impacts of COVID should contact us, to see if they can delay starting payments to a later date.  IR can help with both GST and provisional tax due.

And a note about our office:

Our office is currently open between 9am and 3pm on business days.  We are happy to have face-to-face meetings with clients who are vaccinated.  We ask that you still call our office in advance, and wear a mask.  We are still of course available for phone and Zoom meetings.