The Announcement

On the 17th of March 2020 (and later amended on the 23/03/20) the government announced a financial support package worth over $NZ16bn. The package includes:

✔️Initial $500 million boost for health
✔️$9.1 billion in wage subsidies for affected businesses in all sectors and regions, available from today
✔️$126 million in COVID-19 leave and self-isolation support
✔️$2.8 billion income support package for our most vulnerable, including a permanent $25 per week benefit increase and a doubling of the Winter Energy Payment for 2020
✔️$100 million redeployment package
✔️$2.8 billion in business tax changes to free up cashflow, including a provisional tax threshold lift, the reinstatement of building depreciation and writing off interest on the late payment of tax
✔️$600 million initial aviation support package

You can read more about it on the government website:
17 March 2020 $12.1bn Announcement
23 March 2020 $4bn Amendment

Who Qualifies for this package?

If you’re an employer, contractor, sole trader, or self-employed, you may qualify for the COVID-19 wage subsidy.

✔️ your business must be registered and operating in New Zealand
✔️ your employees must be legally working in New Zealand
✔️ the business must have experienced a minimum 30% decline in actual or predicted revenue over the period of a month when compared with the same month last year, and that decline is related to COVID-19
✔️ your business must have taken active steps to mitigate the impact of COVID-19 (See how you can work towards this one below)
✔️ you must make best efforts to retain employees and pay them a minimum of 80% of their normal income for the subsidised period. For definitions of these qualifications, see the information under the Definitions for Wage Subsidy qualifications.

How much do I get?

You apply online for the wage subsidy, or leave payment. You will need

✔️ the IRD numbers of your business and the employees
✔️ the business name and address and contact details
✔️ the employee names and contact details

The Ministry of Social Development will be processing applications as quickly as possible. They are aiming to make payments 5 working days after the application is approved.

If you want to speak to someone about how Dunedin Property Management can help you. Please give us a call.