Your business needs to meet the eligibility criteria as outlined below and agree to meet the obligations in the declaration to be able to get a COVID-19 Wage Subsidy August 2021. It's available to all New Zealand businesses and self-employed people that meet eligibility criteria.
The full eligibility details and obligations are set-out in the declaration, which you must read and agree to when you apply for the COVID-19 Wage Subsidy August 2021.
You must operate a business in New Zealand that employs and pays the employees named in your application. By business we mean:
Each of the employees named in your application must be legally employed by your business, be employed in New Zealand and have not been given notice of redundancy at the date of your application.
When you apply for the COVID-19 Wage Subsidy August 2021 you must not also be receiving a payment under this COVID-19 Wage Subsidy August 2021 scheme, the Short-term Absence Payment, Leave Support Scheme or Essential Workers Support Scheme in respect of any of the employees named in your application.
"Employee" includes you if you are a sole trader or self-employed person that does not employ employees.
DECLINE IN REVENUE
Your business must meet the revenue decline test:
the calculations and comparisons above cannot include any payments made to you from:
You can include a fall in projected capital income as revenue for the purpose of an application if:
EVIDENCE FROM YOUR BUSINESS
You must prepare and retain evidence to support this declaration, such as records that demonstrate:
Mitigating Impact in your business
Before making an application, you must have taken active steps to mitigate the impact of the move to Alert Level 4 on 17 August 2021 on your business activities.
This includes (but is not limited to) engaging with your bank, drawing on your cash reserves as appropriate, or making an insurance claim.
Cristina Canard is the principal accountant at Apex Accountancy Ltd. Cristina keeps up to date with all the relevant tax changes in New Zealand.