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Wage Subsidy Update
23 August 2021
Breaking News!
New Zealand will remain at Alert Level 4 until 11.59pm on Friday 27 August, with a review on Thursday 26 August. Auckland will remain at Alert Level 4 until at least 11.59pm on Tuesday 31 August, with a review on Monday 30 August.
Significant Government support for businesses and workers has been triggered following a rise in alert levels to combat COVID-19 in the community.
The Government has activated several business support measures to provide certainty to businesses and workers and ensure we get money out the door quickly to protect jobs and keep firms’ operating.
The measures include:
- The Wage Subsidy Scheme (WSS) which is available nationally when there’s a regional or national move to Alert Levels 3 and 4 for a period of seven days and helps eligible businesses keep paying staff and protect jobs. The rates have been raised to reflect increased wage costs.
- The Resurgence Support Payment (RSP) is a payment to help support businesses or organisations with one-off costs due to a COVID-19 alert level increase to level 2 or higher. This is available to eligible firms at the same time as the WSS.
More details on applying for the WSS will be available soon on the Ministry of Social Development’s website, and information on the RSP can soon be found on Inland Revenue’s website.
Other existing support for individuals includes the Leave Support Scheme (LSS) and Short-Term Absence Payment (STAP) rates will also be increased in line with the WSS, as each of these payments is set at the same rate.
The Government remains well-placed to respond to COVID-19. We have over $1 billion left over from the money set aside for WSS and RSP and if needed, the COVID-19 Relief and Recovery Fund has around $5 billion. Our net debt position is much lower than forecast and well below other countries.
A strong public health response has given us a strong economic response and puts economic activity back to pre-COVID levels. Our response will continue to be based on those principles.
More information can be found on the COVID-19 website: https://covid19.govt.nz/
Additional details:
- The Wage Subsidy Scheme (WSS) allows eligible employers anywhere in the country can apply for the WSS if they expect a loss of 40 percent of revenue as a result of the Alert Level increase announced today. The WSS rates have been increased to reflect the increase in wage costs since the scheme was first used in March 2020. Businesses will be eligible for $600 per week per full-time equivalent employee, and $359 per week per part-time employee. The Wage Subsidy will be paid as a two-week lump sum. Applications open on Friday 20 August with the first payments usually available after three days.
- A Resurgence Support Payment (RSP) is available if firms incur a loss of 30 percent of revenue as a result of the Alert Level increase. The RSP is worth up to $1500 plus $400 per full-time equivalent employee, up to a maximum of 50 full-time employees (so up to a total of $21,500).
- The Leave Support Scheme (LSS) provides a two-week lump sum payment of either $585.80 per week for full-time workers, or $350 per week for part-time workers, who must self-isolate and cannot work from home. More information is available at https://www.workandincome.govt.nz/…/who-can-get-it.html
- The Short-Term Absence Payment (STAP) provides a one-off (once per 30 days) $350 payment for workers who must miss work due to a COVID-19 test and cannot work from home. Further information about this payment is available at https://www.workandincome.govt.nz/…/short…/index.html
We are here to support you where we can, so if you are unsure if you qualify for a subsidy, please get in touch.
The end of the financial year is fast approaching, so if you’re balance date/end of financial year is 31 March, there are a few things you need to do to help us prepare your financials. Take a stocktake If your business sells products or has stock, you’ll need to do a stocktake on 31 March. If you’re a business that sells products, then you need to take a stocktake of your physical inventory. If you’re a farmer, then you need to take a physical livestock tally. Send in your EOY papers Compile a folder (digital or hard copy) with a copy of the following documents: Bank statement that shows the balance on 31 March 2025 for all your bank accounts and loans. Insurance invoices. ACC invoices. Loan statements for the year (if applicable). Any new loans or refinancing documents. Invoices for assets purchased and sold. GST workings and reports. Submit the online questionnaire You’ll also need to fill out and submit the online questionnaire. You should receive an email from us in April/May, with a link to fill out and submit the questionnaire. If you haven’t received an email with the link by the end of May, let us know.
At Gunson McLean we are more than just a business offering financial expertise we also support our communities in Dargaville and Whangārei. By partnering with various local organisations, we help sustain and strengthen sports, recreation, and community initiatives in the region. Empowering Local Sports Clubs We understand the role sports play in bringing people together, promoting teamwork, and supporting youth development. We are proud to sponsor the Old Boys Marist Rugby & Sports Club, Hikurangi Rugby Football Club Inc, Maungakaramea Hockey Club, Maungakaramea Bowling Club, Mid Western Rugby Squash Club, Kamo Rugby & Squash Club, New Zealand Vikings Rugby Football Club Inc., and the Cobham Cricket Club. Promoting Outdoor Education We also believe that outdoor education is essential for youth development and are proud to work with the charitable trust, Pātaua Outdoor Education & Recreation Trust (POERT). We have been closely involved in the Trust’s activities for the past 8 years – handlings its financial matters – and Craig Gunson is the current Treasurer. Backing Community Halls & Facilities We’re proud to support the Whareora Hall Society and Whareora Cemetery Board as well as local cycling and motorcycling groups Marsden Wheelers Cycling Club Inc., and the Whangārei Motorcycle Club. We are passionate about the causes we support, and the opportunities and growth this enables in our Dargaville and Whangārei communities.
Most people agree that optimising your business is a good idea and spend hours looking at optimising the supply chain, storage, overheads etc. However, they forget that people are one of the most critical elements in your business. By providing a caring, supportive workplace for employees you also drive the success of your business. Studies show happy workers are productive workers and, as an employer, it’s a no-brainer to provide a workplace where employees feel valued, and where they can flourish. Here are five key ways to build employee relationships, nurture your team, and create a great workplace for your employees: 1. Invest in your employees This doesn’t mean ‘casual Friday’s’ or a pizza night once a month. This is about offering your employees access to training programmes, workshops, conferences, and mentorship programmes. It’s about the professional growth of your employee and how you can enhance their skills and make them feel truly valued as team members. 2. Create a positive work environment Creating a positive work environment is about cultivating a workplace culture that feels positive and supportive of your employees. Be open and transparent with your employees, listen to their feedback and have a strong focus on employee wellbeing. This could include offering flexible working arrangements, benefits such as health insurance, and other perks. 3. Recognise and reward your employees When an employee goes above and beyond, make sure your recognise and reward them. This could by through a performance bonus, employee-of-the-month programmes or even extra time off in lieu. Feeling valued comes partially from feeling rewarded and can be an amazing motivator. 4. Give employees autonomy One of the key ways employees feel trust, is by being given autonomy. Being trusted to come up with their own solutions, processes, and ideas is key to making people feel as if they ‘own’ their role. This helps employees feel fully involved and also brings new ideas, solutions, processes, and efficiencies to the table. 5. Put wellbeing at the heart of your culture Life is stressful. And work-life can be stressful. A well though out wellbeing programme can help your employees manage stress and, in turn, benefits your business. A wellbeing programme is different for each business but some ideas could be checking in with team members, creating a ‘ask for help’ culture, flexible working arrangements including work-from-home days, and offering mental health support. Making sure you’re a caring and supportive employer is vital to your business strategy. With a team who feel valued, nurtured, and encouraged, you’ll all be happier and more productive.
To discuss all your account matters please call us on 09 438 1001
