• Alert Level 1 - 11.59pm, Monday 8 June 2020.
• Wage Subsidy Round 1 - last chance to apply is 9 June 2020
• Wage Subsidy Round 2 - apply from 10 June 2020
• Small Business Cash Flow Loan - application date extended to 24 July 2020

Alert Level 1 - 11.59, Monday 8 June 2020

There was a collective sign of relief this afternoon as the Government made the decision to move to COVID-19 alert level 1 from 11.59pm tonight (Monday 8 June 2020).  There are still a few requirements for businesses and some continuing impacts on the tourism sector with the borders remaining closed.  Thankfully for everyone else, life will begin to return to some form of normal; attending kids sports events, no ques at supermarkets and like will certainly be a highlight for us all. 

The key recommendations under alert level 1 are:

1. If you’re sick, stay home. Don’t go to work or school. Don’t socialise.
2. If you have cold or flu symptoms call your doctor or Healthline and make sure you get tested.
3. Wash your hands. 
4. Sneeze and cough into your elbow, and regularly disinfect shared surfaces.
5. If you are told by health authorities to self-isolate you must do so immediately.
6. If you’re concerned about your wellbeing, or have underlying health conditions, work with your GP to understand how best to stay healthy.
7. Keep track of where you’ve been and who you’ve seen to help contact tracing if needed. Use the NZ COVID Tracer app as a handy way of doing this.
8. Businesses should help people keep track of their movements by displaying the Ministry of Health QR Code for contact tracing.
9. Stay vigilant. There is still a global pandemic going on. People and businesses should be prepared to act fast to step up Alert Levels if we have to.
10. People will have had different experiences over the last couple of months. Whatever you’re feeling — it’s okay. Be kind to others. Be kind to yourself.

Wage Subsidy Scheme - Last chance to apply 9 June 2020

If you are eligible and haven't yet applied for financial assistance via accessing the Wage Subsidy, be aware that the last date to apply is 9 June 2020.  We have provided some detailed advice over the last few months, including a webinar. Please click on the image below to access the webinar we recorded that outlines the requirements for the Government wage subsidy scheme and how to apply, as well as key considerations for your business and how to do a risk assessment.

See further links below to supporting documents we have prepared containing the key information and our advice for completing the wage subsidy application, as well as other considerations for your business.

Wage Subsidy Extension - Available for 10 June 2020

Employers, including sole traders, who are significantly impacted by COVID-19 may be able to apply for an 8-week extension of the Wage Subsidy to continue to pay themselves and their employees.

To qualify:

• You must have experienced a minimum 40% decline in actual or predicted revenue for a continuous 30 day period within the 40 days before you apply (but no earlier than 10 May 2020), when compared to the same (or closest) period last year.
• The decline in revenue must be related to COVID-19.

How to apply:

• Applications for the Wage Subsidy Extension will be open from 10 June 2020 until 1 September 2020.
• If you have been paid the original Wage Subsidy, you need to wait for that 12-week period to end before you can apply for the extension.  So if you applied on say 23 March 2020, then you would not be able to apply until 15 June 2020.

Key points:

• The Wage Subsidy Extension will cover 8 weeks per employee from the date you submit your application.
• It will be paid to you as a lump sum at the same weekly rate as the Wage Subsidy.
• You must pass the subsidy on to your employees.
• You must retain your employees for the duration of the subsidy.
• You must do your best to pay your employees at least 80% of their normal pay.
• You must take active steps to mitigate the impact of COVID-19 on your business.
• Your obligations under employment law continue to apply.
• If the amount of the subsidy is more than an employee's usual wages, you must use the surplus to fund other employees' wages, or if this is not possible, return the surplus to MSD.

The Wage Subsidy Extension is available to provide ongoing support to your business during these difficult times.  It is important that you have the correct information in your application if you decide to apply.  For further information and advice please contact the team here at All Accounted For.  Additional information is also available on the Work and Income website

Small Business Cash Flow Loan Scheme - Final Application Date 24 July 2020

The final application date for the Small Business Cash Flow Loan Scheme has been extended from 12 June 2020 to 24 July 2020.  If you meet the below criteria and are wanting to take advantage of this support, there is still time to get your application completed.  While the scheme requires repayment of the cash, unlike the wage subsidy schemes, it provides access to much needed liquidity at an interest rate that is generally well below commercial lending levels.

The requirements are:

• The application must be made through a MyIR login for the business (Company/Trust/Partnership) or through your MyIR login if a sole trader.
• Eligibility criteria is the same as for the Government Wage Subsidy Scheme, in that the business: 

         - Must be based in New Zealand;

         - Must have suffered or expected to suffer a 30% decline in revenue in any given month from January to June 2020

           as a result of COVID-19 related impacts; and

         - Must have shown that steps have been undertaken to mitigate the financial impact of COVID-19.

• The completion of a declaration similar to the Wage Subsidy application, whereby that business owner believes they have a viable business (must prove by providing forecasts/plan/financial statements), that the loan funds will be used for core business operating expense (rent, utilities, etc) and enter into a legally binding loan agreement with Inland Revenue.

Key terms of the Loans are:

• Loans will be available to business with less than 50 staff;
• Loans of $10,000 per business, plus $1,800 per Full Time Equivalent (FTE) employee (IE: up $28,000 accessible for business with 10 FTE staff);
• The loans will be interest free if the borrowed amount is repaid within 12 months of drawdown;
• The interest rate after the first 12 months will be 3% per annum;
• No loan repayments are required within the first 2 years; and
• The loan must be repaid within 5 years.
   

Applications and further details can be found at the below link.

If you would like some advice around whether you should apply for any of these financial relief schemes, or assistance with your applications, please contact us (04-970-1182 or advice@aafl.nz).

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