Further Update on Government Subsidies

WAGES SUBSIDY


Wage Subsidy Round Opened 17 September

The third wage subsidy round is now open and is available until 11:59pm on 30 September 2021. If you’re waiting to hear about a wage subsidy application from rounds 1 or 2, the Ministry of Social Development apologizes for the delays and says they are working as quickly as they can to clear the backlog. MSD is finding that, in most cases, the reason a wage subsidy application is held up is because the IR number provided in the application doesn’t match with Inland Revenue. This is commonly happening with self-employed people. For people who are self-employed, please make sure the information you provide matches with Inland Revenue:

  • use your personal IRD number

  • give your name as the name of your business

  • give the bank account number IRD has on record

  • choose full-time if you work 20 hours or more a week, or part-time if you work less than 20 hours a week

Don’t worry about your New Zealand Business number if you don’t have one or don’t know it.


If you would like to talk to someone about a wage subsidy application, you can call the freephone line 0800 40 80 40.


Remember Wage Subsidy August 2021 #3 – close at 11:59 PM on 30 September.


RESURGENCE PAYMENT


You should have applied for the RSP 1 by now. If you have not then you can still apply:

From Friday 17th at 9.00 AM you could apply for RSP 2.

"If the increase in alert levels lasts for more than 7 days, you can choose a different start date for the 7-day period where your business or organization has experienced a drop in revenue. The total 7-day period must be within the increased alert level period."


Applications for both payments will remain open until 1 month after the whole of New Zealand returns to alert level 1.


GOVERNMENT LOAN


Should you commence putting aside some funds for this now?


Remember that you have 5 years (60 months) to pay off the loan.


The IRD will send you a payment schedule with the payment dates and amounts when regular payments are required to be made.


Loans will be subject to an annual interest rate of 3% from the date the loan is made available to you.


During the loan period, the following general rules apply.

  • If you fully repay the loan within 2 years, you will not be charged any interest.

  • If you do not fully repay the loan within 2 years, you will be charged interest for the entire term of the loan.

  • Repayments are not compulsory in the first 24 months.

  • Voluntary payments can still be made at any time.

  • After 24 months, you'll be required to make regular payments for both the principal and interest.