COVID-19 Government support payments available
The top 4 Government grants available for lockdown-affected businesses are usefully summarised in this simple chart – including the GST and income tax treatment for these payments.
COVID-19 support Applications are made to Cut-off date for application Amount paid Reduction in revenue
required
GST treatment Income tax treatment
Resurgence support payments Inland Revenue

One month after all of New Zealand returns to alert level 1.

 

The lesser of: 

  • $1500 + $400 for each full-time equivalent worker (to maximum of $21,500), or
  • 4 times  the amount by which revenue has declined

Two payments are available: 

  • from 24 August 2021
  • from 17 September 2021

More may be announced.

30% GST payable on receipt, and input tax credits can be claimed for expenditure funded by the RSP.
  • Not taxable.
  • Expenditure funded by RSP payments not deductible. 
Wage subsidy scheme Work and Income NZ  14 Oct 2021 (subsidy #4) $600 per week per full-time worker
(paid fortnightly)
$359 per week per part-time worker 
(paid fortnightly)
40% No GST
  • Excluded income to employer
  • Not deductible for employer
  • PAYE etc deducted
  • Taxable in hands of self-employed (incl shareholders, trustees, partners)
Leave support scheme 
(sick and self-isolating employees)
Work and Income NZ N/A $600 per week per full-time worker $359 per week per part-time worker None No GST 
  • Excluded income to employer
  • Not deductible for employer
  • PAYE etc deducted
  • Taxable in hands of self-employed (incl shareholders, trustees, partners)
Short-term absence payment
(awaiting COVID-19 test results) 
Work and Income NZ   N/A One-off payment of $359 per worker  None No GST 
  • Excluded income to employer
  • Not deductible for employer
  • PAYE etc deducted
  • Taxable in hands of self-employed (incl shareholders, trustees, partners)


Note:
Businesses can apply for only one type of COVID-19 support payment per employee from Work and Income New Zealand (WINZ). Resurgence support payments from Inland Revenue can be received in addition to the WINZ support payments.