Financial Matters

last updated 18/02/2021


Covid-19 financial support for businesses - updated

last updated 18/02/2021


19 February 2021 - In December 2020, the Government announced the support that would be available to New Zealand businesses in the event of a resurgence of Covid-19. Given the current change in Alert Levels, here's an update from the team at Franchise Accountants.

Covid-19 Short-term Absence Payment

A new Covid-19 Short-term Absence Payment is available from 9am on 9 February 2021. It’s to help businesses keep paying eligible workers who:

  • cannot work from home and
  • need to miss work to stay at home while waiting on a COVID-19 test result (in line with public health guidance).

There’s a one-off payment of $350 for each eligible worker.

It will also be available to self-employed workers.

Parents or caregivers who need to miss work to support their dependents who are staying at home awaiting a test result will also be eligible.

More details from Work & Income on the Covid-19 Short-Term Absence Payment

Covid-19 Leave Support Scheme

The Covid-19 Leave Support Scheme continues to be available. The payment rates are:

  • $585.80 for people working 20 hours or more per week (full-time rate).
  • $350 for people working less than 20 hours per week (part-time rate).

The Leave Support Scheme is for employees and self-employed people who meet certain health criteria (for example workers who are sick with Covid-19 or meet the other eligibility criteria).

More details from Work & Income on the Covid-19 Leave Support Scheme

Covid-19 Wage Subsidy

The Wage Subsidy Scheme will be in place if there is an escalation to Alert Levels 3 or 4 anywhere in New Zealand for 7 days or more. Auckland was moved down to Level 2 on 18 February, after just 3 days at Level 3. This does not therefore currently apply.

Payment rates will be:

  • $585.80 for people working 20 hours or more per week (full-time rate)
  • $350.00 for people working less than 20 hours per week (part-time rate).

Support will be provided in two-weekly payments and total support will match the duration at Alert Level 3 or 4 rounded to the nearest fortnight.

As with the Covid-19 Wage Subsidy paid in 2020, the payment is to support employers (or self-employed people) to pay their employees.

Resurgence Support Payment

A Resurgence Support Payment is now available from late-February 2021 for eligible businesses throughout New Zealand. This one-off payment is to help businesses affected by the Alert Level upgrade with fixed costs.

More details from Inland Revenue on the Resurgence Support Payment

For more information refer to Covid-19 financial support for businesses - Work and Income or contact Franchise Accountants.

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