May Book 2020 May 2020 - Page 24

EDITORIAL Covid -19 Support QUESTION: I have lost a lot of my income due to events not going ahead. Is there any assistance I can apply for? ANSWER: If you have experienced a loss of income of 30% or more then you will be able to apply for the Covid-19 Wage Subsidy. This means: • your business has 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. QUESTION: How much is the subsidy? ANSWER: The subsidy is a lump sum payment. It covers 12 weeks and pays $585.80 per week for full-time workers and $350.00 per week for part-time workers. QUESTION: Are there any other conditions for applying for the subsidy? ANSWER: To apply you must be a New Zealand tax resident and working in New Zealand. 24 • NZ MUSIC COMMISSION MAY BOOK 2020 QUESTION: I have received the subsidy – does the payment include GST? ANSWER: No the subsidy does not include GST. If you are GST registered then when you are coding the income, it should be recorded as EXEMPT income, meaning that it is not included in your GST return. However it is still income to be included in your end of year tax return so you should add a new code ‘Covid-19 Wage Subsidy’. If you have an accountant you may want to check with them which code number to use. QUESTION: My band operates through a Partnership. Should the Partnership apply for the subsidy or the band members? ANSWER: The band members should apply for the subsidy as a Sole Trader. QUESTION: Is there any other help I can get? ANSWER: You may be eligible for the Creative NZ Emergency Relief Grant. An Emergency Relief Grant is a contribution towards loss of income between 1 March and 30 June due to COVID-19. This grant is a lump sum top-up of the WINZ COVID-19 Wage Subsidy to align with Creative New Zealand’s policy to pay artists and arts practitioners fairly.