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Information for Businesses

Update as of 3 March 2021
In this special edition of Business Update we take a look at the different support options available to businesses due to COVID-19 restrictions.  From Resurgence Support Payments through to Leave Support Scheme, there are a variety of financial support options to help your staff and business through lockdown.
Short-Term Absence Payment
We want all our employees to do the right thing if they are symptomatic – stay home and get a test, don’t risk bringing the virus to work.  The Short-Term Absence Payment is a brand new scheme that has been designed to help you keep paying the employees wages should they need to take a Covid test and then stay home and wait for the results.  The payment is a flat rate of $350 per worker, and can be applied for once in a 30-day period.  For more information and to apply head to:
Short-Term Absence Payment – Work & Income
COVID-19 Leave Support Scheme
Some employees may need to stay at home longer, for example if they have the virus or are taking care of people who have been asked to self-isolate.  The COVID-19 Leave Support Scheme is available for employers to help pay their employees who need to self-isolate and can’t work from home.  This is paid out as a two-week lump sum at a flat rate of $585.50 per week for full time employees or $350 per week for part time staff.  To check eligibility rules and to apply visit:
Leave Support Scheme – Work & Income
Resurgence Support Payment
The Resurgence Support Payment (RSP) is available to businesses who’s revenue has been down 30% as a result of being in Level 2 or above.  You can apply for the lesser of $1,500 plus $400 per full time employee; or 4 times the actual revenue drop experienced.

Currently two RSP’s are on offer, one for the 14 February lockdown and one for the current period, and the criteria must be reached for each lockdown.  The 30% drop is calculated compared to a similar 7-day time frame in the previous 6 weeks.  Applications for the 14 February level increase are now open and will close on 22 March.  Applications for the present period open 8 March.

For more information, to check eligibility and to apply please head to the IRD’s website:
Resurgence Support Payment – Inland Revenue
Wage Subsidy Scheme
The Wage Subsidy Scheme will be available nationwide if any part of the country moves to Alert Level 3 or above for seven days or more. Exact details of the announced Wage Subsidy Scheme will be made available soon.  To register to receive the alert head to the following link:
Wage Subsidy Scheme – Work & Income
Small Business Cashflow Loan Scheme
This loan scheme has been extended since last year, and could be a good option to secure a potentially loan for your small business.  Up to $10,000 and $1,800 per full time employee can be borrowed, and for the first two years the loan is interest free and no repayments are required.  Again, your business needs to have suffered a 30% drop in revenue to qualify for this support.  To check eligibility head to:
Small Business Cashflow Loan Scheme – Inland Revenue
More Financial Help
Inland Revenue and ACC have come up with a number of ways to defer tax and ACC payment obligations if your business has suffered financial hardship.  Speak to your accountant for more information or take a look at the hyperlinks above.  Business Debt Hibernation helps you defer business debts so that you can stay solvent until business picks up again. Meanwhile if you need to borrow more to help fund change your business to deal with Covid could apply for the Business Finance Guarantee Scheme – maybe you could change the layout of your shop floor so that you can operate efficiently at each alert level, or build an e-commerce website so that you can trade online.

Finally, take a look at the Covid-19 Financial Support Tool – a questionnaire designed to help you see what forms of financial assistance are available to you and your business
We’re here to help.  For any queries regarding doing business during COVID-19 in Manurewa or Clendon please call (09) 269 5252 or email admin@manurewabusiness.co.nz

 

Together we can slow the spread.

The official NZ website has everything you need to know about COVID-19 in one place. Learn the simple steps you can take to unite against the virus and slow its spread. Find out what help is available and get the latest updates.

If you’re not sure who to contact for help, call the free government helpline on 0800 779 997 (8am–1am, 7 days a week).

Got symptoms? 
Call your GP before you visit. Or call Healthline on 0800 358 5453.

Update as of 19 February 2021
We trust you got through this weeks short lockdown and are back to business under the current Level 2 status.  MBA ambassadors have been busy assisting businesses in Manurewa and Clendon, and we would like to reach out to you now with some additional information.  The official COVID website is a great resource and we suggest this be your first point of call should you have any questions about doing business under each COVID alert level.

Business Resources

Under Level 2 businesses are allowed to be open to the public – just remember the golden rules for doing business under Level 2.

  • Reduce the risk of COVID-19 transmission at work.
  • All businesses can operate if they can do so safely. Alternative ways of working are encouraged where possible.
  • Talk with your staff to identify risks and ways to manage them.
  • Ask everyone — workers, contractors and customers — with cold or flu-like symptoms to stay away from your premises.
  • Keep workers 1 metre apart and customers in retail businesses 2 metres apart.
  • Keep groups of customers at least 1 metre apart, or 2 metres for retail businesses.
  • Businesses are legally required to display a QR code and provide an alternative contact tracing system.
  • Face coverings are strongly encouraged if you are in close contact with others.
  • Reduce the number of shared surfaces, and regularly disinfect them.
  • Wash your hands.
Resurgence Support Payment & Short Term Absence Payment

The Resurgence Support Payment will be open for application from Tuesday 23 February.  It is available to businesses who’s revenue has been down 30% as a result of being in Level 2 or above.  You may also qualify for the Short Term Absence Payment if your employees cannot work while they wait for a COVID-19 test result.  More information is available here:Resurgence Support Payment & Short Term Absence Payment – Work & Income
Lockdown Jitters 
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The latest lockdown, and possibility of more to come, is disconcerting, to say the least.  However, as the following diagram shows, businesses in Manurewa and Clendon are extremely resilient, and our customers are extremely loyal.  According to the numbers, the ‘bounce back’ to pre-COVID spending levels with our local businesses was very rapid and very welcome.
The question is, can we do it again?  Key to the success of our previous recovery has been the close connection with local people, and the emphasis the Association has on building the resilience of local business and the wider community.  This focus on making Manurewa and Clendon great places to live as well as do business is fundamental to our 5-Year Plan, and we’d encourage you to check it out if you haven’t already done so.

Manurewa Business Association 5-Year Plan 2020-2025 by ManurewaBusiness – issuu

So, it seems fair to say that, whilst it might be tough at the time, we are well placed to survive any further lockdowns.

If you have any concerns or queries, please let us know.  We’re here to help.
We’re here to help.  For any queries regarding doing business in Manurewa or Clendon please call (09) 269 5252 or email admin@manurewabusiness.co.nz

Update as at 22 May 2020

Extension to COVID-19 Wage Subsidy scheme
The COVID-19 Wage Subsidy scheme has been extended, allowing for a further 8 weeksper employee.  This time the qualification level is an actual or expected 50% drop in revenue compared to the closest 30 day period last year.  As per the original scheme this subsidy is designed to assist keeping your staff on payroll through the economic slowdown.  Applications open from 10 June onwards.COVID-19 Wage Subsidy Extension – Work & IncomeBusiness Debt Hibernation
Business Debt Hibernation (BDH) allows your business to hibernate existing debts for up to 7 months so your business can get back on its feet, rather than putting in place processes such as liquidation. It requires permission from your creditors and means you can continue trading — subject to any restrictions agreed with creditors as a condition of entering into hibernation.  We suggest you discuss the process with your accountant, lawyer or insolvency practitioner.Business Debt Hibernation tool – business.govt.nzRates Repayment time extensionYour quarterly Auckland Council Rates bill may be eligible for a time extension until 31 August.  You can apply for this delay if your business has had received the wage subsidy, the government guaranteed business loan or the IRD deferred payment.Auckland Council Rates Payment Extension – Auckland Council
Contact Tracing and Covid-19 Business Toolkit

The goverment has released their tracing app, NZ COVID Tracer, designed to work in conjunction with your own existing contact tracing procedures.  You can create a unique QR code for your business here:

Business Connect QR code generator – business.govt.nz

There is also more information about the tracing app on the Covid website.  While you’re there take a look at the Business Toolkit, a great resource full of posters, signs and contact tracing templates that may be suitable for your place of work.

Business Toolkit – covid19.govt.nz
Webinars & Support

Former guests at our Breakfast session Employsure have a couple of free webinars available on their website – Getting back to business after COVID-19 and Ergonomic tips for the home office.

Free Training Webinars – Employsure

Victim Support may be able to help local business owners with the stresses of diminishing business and personal life.  With the added stress of Covid 19 many are struggling with emotional trauma as well as financial burdens.  Former MBA staff member Alison Kinmont represents Victim Support in this area, and she can be contacted directly if you want to have a confidential chat.

Alison Kinmont
Support Worker – Counties Hub
P: (09) 353 0477 x 91557
M: 027 294 4431
E: Alison.kinmont@victimsupport.org.nz

Update as at 1 May 2020

Retail under Level-3

Marketing

  • Join the Facebook group New Zealand Made Products, run by Manurewa local Sarah Colcord.  The group links NZ businesses with over 280,000 kiwis keen to support NZ businesses.
  • Register your restaurant or eatery with Our Local, a database of open businesses by neighbourhood.  Whilst Manurewa hasn’t been published yet, you can register your business for when they switch it on.
  • Get a free customised digital action plan with ATEED’s Digital Assessment tool

Business Mentoring

  • The Auckland Chamber of Commerce is offering free business mentoring during this period – call 0800 543 543 to find out more.
  • Pasifika businesses can access free business support services at Pacific Business Trust

Financial assistance

  • A reminder of government financial assistance can be found on www.covid19.govt.nz, covering Wage Subsidy and Leave Schemes, Business Finance Guarantee Scheme, Business Cashflow & Tax measures and Support for Maori communities and businesses.
  • Commentary on commercial lease obligations courtesy of Barfoot & Thompson Commerical and NZ Dispute Resolution Centre, both of which feature discussion on what constitutes the definition of ’emergency’ under Clause 27.5 of the standard Auckland District Law Society commercial lease template.

Further reading and viewing

Update as at 31 March 2020

A further update for businesses in Manurewa and Clendon in light of the fast changing COVID-19 landscape.
  • Is your business an essential service?  Keeping your staff and customers safe during COVID-19 Level 4.
  • Paying the bills – wage relief and financial support for businesses are now available.
New Zealand moved to Level 4 of the COVID-19 last Thursday, and this is expected to last for AT LEAST four weeks.  For businesses, this means that unless you are an essential service you are expected to close customer facing doors, and work from home where possible.  The full list of essential services is constantly evolving – click on this link to view the latest information.

  • If there is any doubt if your business is an Essential Service, it is probably not – CLOSE your doors and send your staff home.
  • Remember to maintain Social Distance of at least 2 meters between people at your place of essential business.
  • Dairies must operate a one-in-one-out rule, and cannot sell cooked food.

If your place of work IS an essential service, please remember to follow the steps to keep your staff and employees safe:

  • limiting, or eliminating if possible, physical interaction with and between customers, eg through online or phone orders, contactless delivery or managed entry (while also avoiding crowding outside), and physical distancing both inside and outside the premises
  • hygiene basics of hand washing and sanitisers
  • frequent cleaning of premises, especially counters and eftpos terminals, and other high-touch surfaces (cleaning advice is available on the Ministry of Health website)
  • protective equipment for staff as appropriate.

For advice and support for essential businesses please contact 0800 22 66 57 (9 am–5 pm, Monday–Friday).

Economic Response Package

The Government has recently expanded on its COVID-19 economic response package. The package now includes:

  • No annual revenue limits to wage subsidy scheme
  • Business Finance Guarantee scheme announced
  • IRD cashflow and tax measures

Wage subsidy scheme

Wage subsidies are available for all employers that are significantly impacted by COVID-19 and are struggling to retain employees as a result. The scheme is open to all businesses, including sole traders and the self-employed.  A subsidy of $585.80 per week for full-time employees is available in certain situations.

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

If you are claiming this subsidy it MUST be passed on in full to your employees.  Ideally you would top up this amount to match your employee’s current rate, and the employee must be retained on your books at a minimum of 80% of their normal wage or salary.  An example courtesy of Tony Parkes at Bonded NZ Ltd Specialist Insurance:

Employee on Salary of $60,000 = $1153.85 per week.
You reduce their hours by 20% – cost to you is therefore $923.08 per week.
You receive a subsidy of $585.80 per week.
Net cost to you is $337.28 per week.

This is $337.28 for 32 hours of 40 per week = equivalent cost of $10.54 per hour.

Business Finance Guarantee Scheme

A $6.25m Mortgage Repayment Holiday and Business Finance Guarantee Scheme will provide short-term credit to cushion the financial distress on solvent small and medium-sized firms affected by the COVID-19 crisis.

The scheme will include a limit of $500,000 per loan and will apply to firms with a turnover of between $250,000 and $80 million per annum. The loans will be for a maximum of three years and expected to be provided by the banks at competitive, transparent rates.

Details are being worked through the major banks and the governement – further details are expected to be announced in the next few days.

Business cash flow and tax measures

There are a number of business cash flow and tax measures that have been announced – information can be found on the Inland Revenue website.

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

Rent and commercial leases

The Government has announced that they are preparing a support package for commercial lease holders, however they have not given a date for when that will be released, what it will look like, or how it will work yet.

If you are having problems meeting your commercial rent obligations, talk to your landlord and try to keep in mind that there is no easy answer for either party. For those who are able to wait for the outcome of the Clause 27.5 interpretation, and the release of Government support package, we would recommend you do so. Both tenants and landlords may come under immense financial pressure during this period so neither side is going to have an easy run though this.

Hopefully the Government will come forward with a package that will allow relief for the tenants without transferring excess financial pressure onto landlords. Ultimately we all want to try and survive this and no-one wants to see business closures or mortgagee sales.

Click here or more information on Auckland District Law Society clause 27.5 and other rent and commercial lease discussion, courtesy of Barfoot & Thompson Commercial.
Were here to help.  If you have any questions, need help in getting more information or want to talk to us call us on (09) 269 5252 or email admin@manurewabusiness.co.nz

 

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