COVID-19 support available to Northland businesses

Northland businesses impacted by the COVID-19 Level 4 lockdown are able to call on a package of supports from MSD and other agencies in the region.

Ministry of Social Development, Economic Development Manager for Northland, Darrell Lambert says that businesses will need financial and other support given the impact of the lockdown on cashflows.

“The message to Northland businesses is that support is available now. It’s critical that business operators are aware of that and where to go to for the latest information,” says Lambert.

“MSD staff are contacting businesses to ensure they know how they can apply for the August Wage Subsidy if they need to, as well as the package of support available from MSD and other agencies.

“We’re also reaching out to “essential” businesses to ensure they can continue to recruit staff and working with our partners in the Northland businesses community to provide wrap-around support that will help ease the strain of this lockdown.”

Northland Inc. Chief Executive, Murray Reade says the Northland economy is resilient and support measures such as the August Wage Subsidy, will help to lessen the economic impact of lockdown.

“Economic data tells us that on the whole, Northland weathered the impact of previous COVID-19 restrictions, including last year’s Level 4 lockdown and the resurgence in February. The fact that there are many employment opportunities in the region is proof of the region’s resilience.”

Says Reade: “Obviously this is a worrying time for business owners, and they should know that we are here to provide guidance and support when its needed.
“We also need a good team response from Northlanders to keep our people safe. Looking ahead, that will help to lessen the economic impact of this lockdown on the region.”

NorthChamber Chief Executive, Steve Smith says the Chamber’s first priority is the welfare of business operators and their employees, especially given the Delta variant can spread easily and rapidly: - “There is a level of concern in our business community about Delta. That’s why we’re reaching out with information about pastoral support along with the financial support that is available.”

“We are also encouraging businesses operators to stay safe and to follow the public health advice. If your business is not deemed “essential”, then you and your employees must stay home and stay in your bubble. Ultimately, the best defence against Delta is to get vaccinated,” says Smith.

Supports available from the Ministry of Social Development (MSD):
The Wage Subsidy August 2021 Scheme. The Wage Subsidy is a payment which covers a 14-day period to contribute to the cost of employee wages only, and the payment rate is $600 a week (full time) and $359.00 a week (part-time).

Businesses need to have had (or predict to have) a minimum 40% decline in revenue in the 14-days since the Alert Level escalation (between 17 – 30 August 2021), when compared with their revenue during a typical 14-day period in the six weeks immediately before the Alert Level escalation (or the same 14-day period in 2019 or 2020 if the business has highly seasonal revenue).

Applications opened at 9 am on Friday 20 August 2021. Note that the information given by applicants needs to match the information held by Inland Revenue (e.g. IR number, company name, bank account, employee details including name and IR number). Further information is available at COVID-19 Wage Subsidy August 2021 announced - Work and Income

The COVID-19 Leave Support Scheme is available for employers to help pay their employees who need to self-isolate and cannot work from home. It is paid as a two-week lump sum per eligible employee. The payment is also available to those who are self-employed. Detail about eligibility, health criteria and COVID-19 Leave Support scheme rates is available at Leave Support Scheme
The COVID-19 Short-term Absence Payment is available for employers to help pay their employees who need to stay at home while awaiting a negative COVID-19 test result and cannot work from home. You can apply for STAP once, for each eligible worker in any 30-day period (unless a health official or doctor tells the worker to get another test). The payment is also available to those who are self-employed. Apply online at Short-term-absence-payment

You cannot get more than one MSD COVID-19 payment for the same employee at the same time. This applies to the Wage Subsidy, Short-term Absence Payment and Leave Support Scheme.

Supports available from Inland Revenue:

Resurgence Support Payment. Businesses and self-employed people will also be able to get support with business costs like rent or fixed costs through the Resurgence Support Payment, administered by Inland Revenue, which opens on 24 August and can be accessed through the Inland Revenue website. Businesses can apply for the Resurgence Support Payment at the same time as the Wage Subsidy Scheme. Go to Inland Revenue resurgence-support-payment

Other business support:
Northland Inc. A range of expert advisory services are available through Northland Inc. Northland Inc
NorthChamber. Expert business assistance and advocacy is available through NorthChamber (The Chamber of Commerce and Industry of Northland (Inc)); NorthChamber

Business information:
A central resource for business information and government supports is available at COVID-19 — business.govt.nz. Details about business support is also available on the Unite Against COVID-19 website.

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