Round 3 of the Wage Subsidy

By now we are familiar with the criteria for the wage subsidy and amounts that are available. If you are not then please read our previous newsletter or watch the video  below to hear Jamie Reidie, A Business Advisory Partner, discuss what is available. The key point is that the applications are for fortnight periods in advance and once the period closes you can not make an application for that period.

The third round opened today, 17 September, and is for the next fortnight. You can apply for this round even if you haven’t applied for either of the first two. If you are uncertain about your eligibility or have any questions, please contact your Manager or Partner.

Round 2 - Resurgence Support Payment

The second round of Resurgence Support Payment opened today 17 September with the same criteria as the first round, a 30% drop in revenue over a seven day period. The payment is:

• $1,500 per business plus $400 per full-time employee (FTE), up to 50 FTE.
• The maximum payment is $21,500.
• If you're a sole trader, you can receive a payment of up to $1,900

You are still able to apply if you have received payment under the first round. If you are uncertain about your eligibility or have any questions, please contact your Manager or Partner.

Financial support for business

Whilst the Wage Subsidy and Resurgence Support Payments are the most common financial support available from the Government, they are not the only available schemes. There is also:

• Small Business Cashflow Loan Scheme
• Insolvency relief for businesses
• COVID-19 Leave Support Scheme
• COVID-19 Short-Term Absence Payment

Alongside this, the IRD have advised they will be flexible with tax payments. The team at Polson Higgs can help you determine which schemes you are eligible for and can assist with any of the application processes. If you have any questions, please feel free to email us or contact your Manager.

What is your true breakeven?

Jumping through alert levels has highlighted the importance of understanding the true breakeven point of your business. At what level of activity in your business do you actually start to make money? How many widgets do you have to make or sell in a day? What are your fixed costs even if the doors are closed, and what are the variable costs when you do open the doors?

The answers to all those questions can be calculated and provided in a simple dollar value of X. If you are going to make more than X - you open, and if you will make less then X - you remain closed. However, it is never as black and white as that. You also need to consider the wider impact on your clients and your position within the market on any decision to open or remain closed. If you are closed and your competitors are open what message are you sending to your customers?

There are multitude of factors to consider in setting a breakeven point. Your Business Advisor at Polson Higgs can help with both calculating that dollar amount, but more importantly they can provide guidance on the intangible’s that you need to consider. If you have any questions, please do not hesitate to contact your Business Advisor.

                                                  ______________________

Stay safe and keep in touch.

Kind regards

Polson Higgs Team

You have received this email because you are subscribed to Polson Higgs mailing list. 
If you no longer want to receive messages from us simply click the link below to unsubscribe. 
Unsubscribe Here 
Copyright © 2018 Polson Higgs, All rights reserved