Update from MBS Advisors
We have come to the end of a tough year with many of us looking forward to a couple of weeks rest.
We want to thank you all for working with us this year under considerably trying circumstances and wish you all a very Merry Christmas and a Happy New Year.
While 2020 brought us challenges, we hope 2021 will bring a positive but COVID-19 free year, and on that note we start our newsletter on the proposed business support packages from the Government.
GOVERNMENT ANNOUNCEMENT ON PROPOSED BUSINESS SUPPORT PACKAGES FOR COVID-19 The Government has recently announced a proposed business support package.
The purpose of this is to support businesses and individuals in the event of Alert level escalations due to resurgences of COVID-19 in the community.
This will allow businesses to plan knowing what support they will receive if Alert levels rise.
This support will be available late February or early March 2021 subject to the necessary legislation being passed.
Alert levels 2 or above:
Directly impacted businesses will be able to apply for a one-off Resurgence Support Payment. This provides a one-off cash injection to businesses who incur a revenue drop of 30% or more over a 14 day period as a result of the effects of an Alert level escalation.
The Resurgence Support Payment will consist of a core business rate ($1,500.00) plus a payment per employee of $400 up to a total of 50 full time equivalent (FTEs) employees. For example: An impacted firm with 7 FTEs would receive $4,300.00, any impacted firm with over 50 FTEs would receive the maximum of $21,500.00.
Firms can still access the Small Business Cashflow Scheme for additional support.
Alert levels 3 or above:
The Wage Subsidy Scheme will be in place if there is an escalation to Alert level 3 or more. This will be provided in fortnightly payments.
Payment rates of $585.50 per week for each full time employee and $350 per week for each part time employee. The same rules on retaining staff and passing on the subsidy remain, as does the eligibility threshold of a 40% decline in revenue.
The 40% decline will now be measured in relation to the typical fortnightly revenue in the 6 weeks prior to the Alert level escalation, rather that revenue from a year ago.
There are a couple more schemes that will be available at all Alert levels, we will provide more details once the proposed business support package legislation has been confirmed.
THE NEW PRIVACY ACT 2020 New Zealand's privacy laws have changed as of 1st December 2020 with the introduction of the Privacy Act 2020. This new act replaces the Privacy Act 1993.
The new law introduces greater protections for individuals and some new obligations for businesses and organisations.
The Privacy Commissioner has the power to help you access your own information and to ensure that businesses and organisations comply with the law.
We would like to assure our clients that we take the holding of your information very seriously, and we are confident that we have effective systems in place to keep your information secure.
If you would like to know more about your rights under the Privacy Act 2020 click below for more information.
HOW TO APPROACH FIXED MILK PRICING Nigel McWilliam has provided some commentary around this, so please check out your next edition of Dairy Exporter for the overview of strategies on how to approach fixed milk pricing.
Our Office will reopen at 8am on Wednesday 6th January 2021
Check out our website for our latest blogs and follow us on social media |