Tax Talk | Income tax treatment of accommodation provided to employees
Inland Revenue has released an operational statement in relation to employer-provided accommodation and...
COVID-19 support payment available for businesses
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While Wellington has gone back to alert level 1, the six day alert level 2 period meant the resurgence support payment has kicked in. Applications open on 1 July at 8am and can be made via the Inland Revenue website (direct link here).
The resurgence support payment is provided to any business or organisation in New Zealand who has experienced at least a 30% drop in revenue or a 30% decline in capital-raising ability over a 7-day period due to the increased alert level. The decrease needs to be compared with a typical 7-day revenue period in the 6 weeks prior to the increase from alert level 1.
The payment is calculated as $1,500 per business plus $400 per full time equivalent employee, up to a maximum of 50 full time equivalent employees (so a maximum of $21,500).
Note, unlike the wage subsidy, the resurgence support payment is subject to GST and should be included in the GST return if your business or organisation is GST registered. This also means GST input credits on relevant expenditure can be claimed.
Applications for the resurgence support payment will be open until a month after Wellington was back at alert level 1.
It is useful to note that all businesses in New Zealand who meet the criteria are eligible for this support. This is particularly helpful for businesses in the area surrounding Wellington who, while they were not subject to alert level 2 restrictions themselves, were reliant on Wellingtonians visiting them.
It is also important to note that the 30% drop in revenue must be due to the increased alert level. Tourism related businesses will need to ensure they separate out drops in revenue caused by the increased alert level from drops in revenue caused by the suspension of quarantine free travel with Australia.
If you have any queries about the resurgence support payment, or require any assistance with the calculations, please contact your Baker Tilly Staples Rodway advisor.