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Thread: NZ self-employed being at overseas qualify for Covid-19 wage subsidy, or not?

  1. #1
    Join Date
    Mar 2014
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    China
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    Question NZ self-employed being at overseas qualify for Covid-19 wage subsidy, or not?

    I am self-employed, but right now, I am physcially outside New Zealand.

    I am confused whether I quality for this Covid-19 wage subsidy or not

    https://www.employment.govt.nz/leave.../wage-subsidy/
    https://www.workandincome.govt.nz/pr...9-support.html

    It says:

    Sole traders must still meet the requirements to be physically located and legally working in New Zealand.


    Does it clearly mean that if the applicant is outside New Zealand, then it's not qualified?

    Thanks in advance.

  2. #2
    Join Date
    Jan 2007
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    Chch, NZ
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    2,220

    Default

    Quote Originally Posted by godwits View Post
    I am self-employed, but right now, I am physcially outside New Zealand.

    I am confused whether I quality for this Covid-19 wage subsidy or not

    https://www.employment.govt.nz/leave.../wage-subsidy/
    https://www.workandincome.govt.nz/pr...9-support.html

    It says:

    Sole traders must still meet the requirements to be physically located and legally working in New Zealand.


    Does it clearly mean that if the applicant is outside New Zealand, then it's not qualified?

    Thanks in advance.
    I'm pretty sure the key requirement is the 30% loss in income / sales for your NZ resident business. You may have a business that puts you overseas (ie not physically in NZ) but I don't think 'where you are' is the issue but rather, if your business is registered in NZ and it's sales are dependant IN NZ, then there should be no issue. Here are the requirements:

    How businesses qualify
    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 wit -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.

  3. #3
    Join Date
    Mar 2014
    Location
    China
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    Thanks for the reply.

    On the wage subsidy page, there is a section about definition

    What does registered and operating in New Zealand mean?
    This means that a business is:

    registered with the New Zealand Companies Office, and
    physically located in New Zealand, and
    their employees legally work in New Zealand.

    How to define if a company is physically located in New Zealand?
    Mine is an online travel booking service company.

    My partner and I are the only two directors of the company, and both of us are currently outside New Zealand.
    We are NZ residents.

    I tried to call Ministry of Social Development, the phone doesn't connect.
    I also emailed them, there has been no reply yet.

    Any further input from the forum members would be highly appreciated.

    I certainly want to make sure that I am eligible before I apply.

  4. #4
    Join Date
    Oct 2016
    Location
    New Zealand
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    I just had a question that I was employed by a firm in Hawkes Bay as a Chef de Partie and also i got my 3 years visa on the 12th of March and was terminated on the 17th of March due to coronavirus as the business was interrupted due a pandemic. So at the moment I'm jobless so I'm I eligible for the wage subsidy?

  5. #5
    Join Date
    Mar 2014
    Location
    China
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    Quote Originally Posted by ishpai1 View Post
    I just had a question that I was employed by a firm in Hawkes Bay as a Chef de Partie and also i got my 3 years visa on the 12th of March and was terminated on the 17th of March due to coronavirus as the business was interrupted due a pandemic. So at the moment I'm jobless so I'm I eligible for the wage subsidy?
    Oh, I am sorry to hear that.

    Can you check if your firm can re-employ you?

    My understanding is that only your employer can apply on your behalf.

    As at 27 March 2020, they updated the policy:
    Check this page:
    https://www.workandincome.govt.nz/on...e-subsidy.html

  6. #6
    Join Date
    Nov 2017
    Location
    New Zealand
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    Quote Originally Posted by ishpai1 View Post
    I just had a question that I was employed by a firm in Hawkes Bay as a Chef de Partie and also i got my 3 years visa on the 12th of March and was terminated on the 17th of March due to coronavirus as the business was interrupted due a pandemic. So at the moment I'm jobless so I'm I eligible for the wage subsidy?
    Hi,

    Below is the official answer and looks like you need to speak with your employer. If they have already applied, it could be an issue.
    ______________________
    As an employer I had to let some of my employees go because of COVID-19. Can I rehire them and get the COVID-19 Wage Subsidy to help pay them?

    You can apply for the COVID-19 Wage Subsidy if you re-employ your employees before you apply and if your employees were:

    employed by you as of 17 March 2020; and
    you had to let them go because of COVID-19; and
    you did not apply for the COVID-19 Wage Subsidy for the employees.
    It is expected that employers and employees would operate in ‘good faith’ and employers would look to re-hire on at least the same terms and conditions.
    ______________________

    FAQ is here- https://workandincome.govt.nz/produc...wers.html#null

    Thanks,
    Saumya

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