Corona Virus/Covid-19 – Business Support

As well as this page, you may also find articles that resonate with you on our blog page.

Business Continuity Plan and Emergency Planning

You may need both.  An Emergency Plan is a way of organising employer and employee actions during workplace emergencies.  A Business Continuity Plan focuses on the operations of the business until it can return back to normal.

Here are some helpful links as New Zealand moves through this pandemic:

Support Packages 

The following information is from the Ministry of Business, Innovation and Employment www.business.govt.nz.  This page brings together everything relating to, and including updates about the Corona Virus/Covid-19 and how it may affect your business.

Updated as new information is available (last updated 23 March 2020)

This is the New Zealand government’s central resource for COVID-19 business information.

Please refer to the Ministry of Health for health-related information and COVID19.govt.nz for all other information from government.

COVID-19 (novel coronavirus) (external link) — Ministry of Health

Unite against COVID-19 (external link) — COVID19.govt.nz

Covid-19 Employer Support (WINZ) – www.workandincome.govt.nz

This page has COVID-19 business information related to:

Economic response package and eligibility

Government support for businesses affected by COVID-19 includes:

  • wage subsidy scheme
  • leave and self-isolation support
  • business cash flow and tax measures
  • wider $12.1 billion package.

Guidance for wage and leave support applications

Guidance to help businesses, including employers and the self-employed, understand their eligibility for the wage and leave support packages is under development and expected the week of 23rd March.

In the meantime, make sure you take your time when determining your eligibility and making your application. Taking your time now to get it right will ensure you receive all the support you’re entitled to.

Wage subsidy scheme

A further update to the wage subsidy scheme was announced on 23 March 2020.

There is no maximum for the amount of assistance a business can receive. This is to enable more support for workers in medium and large sized businesses.

Easier to follow income loss assessments for number of businesses have been put in place to improve the wage subsidy scheme.

Wage subsidies will be available for businesses significantly impacted by COVID-19 including:

  • employers that are struggling to retain employees
  • sole traders
  • self-employed
  • existing businesses
  • registered charities
  • non-government organisations
  • incorporated societies
  • post settlement governance entities
  • new businesses less than a year old.

For businesses older than 12 months old wage subsidies will be available for those who can show a 30% decline in revenue, attributable to COVID-19, for any four weeks between January and June 2020 compared to the year before. This includes forecasting future months.

For businesses less than 12 months old, the wage subsidy will be available for those who can show a 30% decline in revenue, attributable to COVID-19, against a similar time period (ie 30% loss of income when comparing January 2020 to March 2020).

Businesses that have had a significant increase in revenue over the past year are eligible, where they can show a 30% decline in revenue, attributable to COVID-19, against a similar time period (ie 30% loss of income when comparing January 2020 to March 2020).

People who are self-employed and have variable monthly incomes are eligible if they can show a 30% decline in revenue, attributable to COVID-19, against the previous years’ monthly average (ie 30% loss of income comparing March 2020 to the average monthly income in the period March 2019 to March 2020).

The subsidy is for 12 weeks. It is:

  • $585.80 per week for a full-time employee (20 hrs or more)
  • $350.00 per week for a part-time employee (less than 20 hrs).

The payment will be made as a lump sum. This means employers will receive a payment of $7,029.60 for a full time employee and $4,200 for a part time employee.

More information on who qualifies for the wage subsidy, definitions for wage subsidy qualifications, and how to apply, can be found from Work and Income. You may also need a New Zealand Business Number (NZBN) to apply.

COVID-19 business support (external link) — Work and Income

NZBN (external link) – New Zealand Business Number

Leave and self-isolation support

Workers and businesses have responsibilities to prevent the spread of COVID-19. The purpose of the COVID-19 leave and self-isolation scheme is to support workers financially to self-isolate, or while ill with COVID-19.

From 17 March 2020, the COVID-19 leave payment will be available to support people financially if they:

  • need to self-isolate
  • can’t work because they are sick with COVID-19
  • can’t work because they are caring for dependents who are required to self-isolate or who are sick with COVID-19.

The payments will be:

  • $585.80 per week for a full-time worker
  • $350 per week for a part-time worker.

The COVID-19 leave payment will be available for eight weeks from 17 March 2020. Employers will be able to apply for this more than once.

More information on who qualifies for the leave payment, and how to apply, can be found from Work and Income. You may also need a New Zealand Business Number (NZBN) to apply.

COVID-19 business support (external link) — Work and Income

NZBN (external link) – New Zealand Business Number

Business cash flow and tax measures

There are a number of business cash flow and tax measures that have been announced, including:

  • Giving Inland Revenue the discretion to remit use-of-money interest (UOMI) for customers significantly adversely affected by COVID-19.
  • Increasing the provisional tax threshold from $2,500 to $5,000 from 2020/2021.
  • Increasing the small asset depreciation threshold from $500 to $1,000 — and to $5,000 for the 2020/21 tax year.
  • Allowing depreciation on commercial and industrial buildings from 2020/2021.
  • Removing the hours test from the In-Work Tax Credit (IWTC) from 1 July 2020.

More information on the business cash flow and tax measures can be found from Inland Revenue.

COVID-19 tax relief (external link) — Inland Revenue

Wider $12.1 billion package

There are further parts to the wider $12.1 billion package that you may be interested in, including income support and further investment in the health response.

More information on the wider package can be found from the Treasury.

COVID-19 Economic Package announced (external link) — Treasury

 

New Zealand moves to COVID-19 Alert Level 3, then Level 4 from Thursday 25 March

 

  • New Zealand moved up to COVID-19 Alert Level 3 – Restrict
  • New Zealand to move up to COVID-19 Alert Level 4 – Eliminate, from Thursday 25 March
  • Two-staged approach to give people and businesses time to prepare

Level 3, from 24 March 2020

  • Non-essential businesses must close
  • All events and gatherings must be cancelled
  • Schools will only open for children of essential workers. They will close completely when we move to Level 4
  • Workplaces must implement alternative working with everyone who can to work from home
  • No discretionary domestic air travel between regions
  • Public transport for people undertaking essential services and transport of freight only

Information on what is an essential business can be found on the COVID19.govt.nz website.

Current COVID-19 alert level (external link) — COVID19.govt.nz

More information on the Alert Levels can be found on the COVID19.govt.nz website.

Unite against COVID-19 (external link) (external link) — COVID19.govt.nz

Exporters and importers

If you are an exporter or importer, New Zealand Trade and Enterprise (NZTE) has set up a new website which brings together information from NZTE, the Ministry for Primary Industries, the Ministry for Foreign Affairs and Trade, and Customs. Information is reviewed daily. It also includes contact details for the relevant agencies for you to get in touch with depending on your situation.

Coronavirus (COVID-19) – Information for exporters (external link) — New Zealand Trade and Enterprise

If you are an exporter with a specific concern you’d like to discuss, NZTE has opened up access to a panel of external experts. If you are not already working with NZTE, you can call 0800 555 888.

Tax and ACC

If you are having difficulties or concerns about meeting your normal tax obligations due to the effects of COVID-19, Inland Revenue has a range of ways to help depending on your circumstances.

Tax relief – COVID-19 (novel coronavirus) (external link) — Inland Revenue

If you are concerned about meeting your ACC levy obligations, ACC has information to help.

Important information about novel coronavirus COVID-19 (external link) — ACC

Cash flow

Get in contact with your bank if you’re experiencing cash flow issues, especially in regards to loans repayments or lack of funding. They might be able to help or put you in touch with someone who can.

Banking sector prepared for responding to COVID-19 (external link) — New Zealand Bankers Association

Travel

Most foreign travellers can no longer enter New Zealand. Returning residents and citizens must isolate themselves for 14 days upon arrival. Immigration New Zealand has information for travellers, visa holders (including students), migrant workers and employers.

COVID-19 (external link)— Immigration New Zealand

COVID-19 (novel coronavirus) — Countries and areas of concern (external link) — Ministry of Health

If you’re a New Zealander living and traveling abroad, SafeTravel from the Ministry of Foreign Affairs and Trade has information to assist.

COVID-19 (Coronavirus) (external link) — SafeTravel (MFAT)

If your travel plans are affected by the COVID-19 outbreak, Consumer Protection has guidance about cancelled or delayed flights and travel bookings.

Coronavirus – Are your travel plans affected? (external link) — Consumer Protection

If you run a travel business, Tourism New Zealand has information available.

COVID-19 – Information for industry (external link) — Tourism New Zealand

Tourism New Zealand has also released activity plans to support the tourism industry for the short to medium term.

Tourism New Zealand supports economic recovery from COVID-19 (external link) — Tourism New Zealand

Employers

If you have employees, Employment New Zealand has specific guidance in response to COVID-19 including how to handle self-isolation and sick leave.

Workplace response to coronavirus (external link) — Employment New Zealand

Coronavirus (COVID-19) and the workplace (external link) — Employment New Zealand

If you have questions about handling information about an employee that isn’t well, including if there is a serious threat to someone’s safety, wellbeing or health, the Office of the Privacy Commissioner has guidance to help.

Is it okay to tell other employees that a colleague is sick? (external link) — The Office of the Privacy Commissioner

When can I use the serious threat exception? (external link) — The Office of the Privacy Commissioner

If you’re considering reducing people’s hours or redundancies due to COVID-19, the Ministry of Social Development (MSD) has support and advice.

Coronavirus: Redundancy information for employers [PDF 114KB] (external link) — Work and Income

Health and safety

If you have health concerns, information and advice about COVID-19 is available from the Ministry of Health. They also have advice about managing your mental wellbeing.

COVID-19 (novel coronavirus) (external link) — Ministry of Health

COVID-19 — Managing your mental wellbeing (external link) — Ministry of Health

Healthline has a free dedicated phone number for health advice and information about COVID-19, including registering self-isolation. You can call 0800 358 5453, 24 hours a day, seven days a week. Access to interpreters is also available. For international SIMS, call +64 9 358 5453.

WorkSafe New Zealand has information about the business and worker requirement for keeping people safe and well in the workplace, as well as guidance about personal protective equipment (PPE).

Workplace preparedness for novel coronavirus (COVID-19) (external link) — WorkSafe New Zealand

Landlords and tenants

If you’re a landlord or tenant of a rental property affected by the COVID-19 outbreak, Tenancy Services has information about your rights and responsibilities. They also have guidance and next steps if you are experiencing discrimination.

Coronavirus (COVID-19) – what landlords and tenants need to know (external link) — Tenancy Services

Education

If you are a childcare centre, work in education or are the parent, caregiver and whānau of learners, guidance is available from the Ministry of Education.

COVID-19 (external link) — Ministry of Education

Scams and cyber security

CERT NZ is aware of a global increase in reports of cyber criminals using the COVID-19 pandemic as an opportunity to carry out online scams and malicious cyber activity. They have guidance to help.

Attackers using COVID-19 themed scams (external link) – CERT NZ

Contributors

This article is in association with Treasury, New Zealand Trade and Enterprise, Ministry for Primary Industries, New Zealand Customs, Inland Revenue, ACC, Reserve Bank of New Zealand, New Zealand Bankers Association, Immigration New Zealand, Ministry of Foreign Affairs and Trade, Consumer Protection, Tourism New Zealand, Employment New Zealand, Office of the Privacy Commissioner, Ministry of Social Development, Ministry of Health, WorkSafe New Zealand, Tenancy Services, Ministry of Education, Department of Internal Affairs, CERT NZ and New Zealand Business Number.

A business continuity plan (BCP) can help prepare you and your business for disruptions and emergencies.

To ensure the long-term sustainability of your business, you should have a business continuity plan (BCP) for events like COVID-19. A BCP can help your business prepare for many kinds of emergencies, such as a global pandemic, an act of terrorism, a cyberattack, or a natural disaster like a fire, flood or earthquake.

Continuity and contingency planning

Inland Revenue Department

www.ird.govt.nz

Civil Defence

www.civildefence.govt.nz

Ministry of Health

www.health.govt.nz

NZ Mental Health Foundation

www.mentalhealth.org.nz

DPA (Disabled Persons Assembly) New Zealand

www.dpa.org.nz