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COVID-19 Support: What you need to know (Law blog)

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Aspiring Law

29 March 2021, 11:46 PM

COVID-19 Support: What you need to know (Law blog)

The recent lockdowns in Auckland prompted the government to offer support to affected businesses nationwide.


“The payment is available to businesses nationally if they can meet the eligibility criteria, not just those in Auckland,” said Finance Minister Grant Robertson. “That decision recognises that many businesses rely on Auckland for revenue, so it is only fair that the payment is available nationally.”



Meeting the eligibility criteria is key. The Ministry of Social Development (MSD) has been carrying out random audits of the 759,000 businesses that received last year’s wage subsidy. At the end of February, MSD had completed 10,902 audits of the wage subsidy and resolved 4750 allegations of misuse. So be warned. If you claim COVID-19 support payments, you must be able to prove you are entitled to them.


Back up Your Claim


“The wage subsidy has been a lifeline for a lot of companies so take advantage of it if you can,” advises Robbie Bryant, a Senior Associate with Aspiring Law. “Does Auckland's lockdown impact our region? Well we've had a number of events cancelled including Motatapu, which generally brings 1500 to 2500 athletes and their families into town, so there is a lot less business and foot traffic as a result of the lockdowns.” 


“The funding is available to businesses in Central Otago but you should make sure you meet all the criteria. You have to provide a statutory declaration to prove a substantial loss of income. And if you are claiming for employees, you have to commit to retaining those employees. As with any statutory declaration just remember to back it up with evidence. If you're unsure whether your business is eligible or not, it might pay to seek accounting and legal advice to help you make the right decision.”


Read more HERE