BUSINESS CONTINUITY PLAN

On March 17, 2020 the New Zealand government announced a Business Continuity Package designed to provide immediate relief to tourism operators facing a devastating downturn in the midst of this crisis.

KEY POINTS:

  • This funding will be available to operators in all regions without delay – the government has indicated that payments may be possible within five days
  • The wage subsidies will be available for businesses that can show a 30% decline in revenue for any month between January and June 2020 compared to the year before (including projected revenue)
  • There is a $150,000 cap to the payment of $585 per full-time employee for 12 weeks, which should allow for approximately 20 staff to be subsidised
  • Tailormade packages are being made to larger businesses. Please contact Work and Income immediately to explore what options are available to you
  • While the package does not currently include business loans, the government has indicated it will hold further discussions with banks around access to capital for businesses
  • Download the wage subsidy factsheet here

TO QUALIFY:

  • your business must be registered and operating in New Zealand
  • your employees must be legally working in New Zealand
  • the business must have experienced a minimum 30% decline in actual or predicted revenue over the period of a month when compared with the same month last year, and that decline is related to COVID-19
  • your business must have taken active steps to mitigate the impact of COVID-19
  • you must make best efforts to retain employees and pay them a minimum of 80% of their normal income for the subsidised period.
  • More information on the qualifying definitions is available here.

For more information on the wage subsidy scheme and other support for businesses, please visit the NZ Government website and business.govt.nz