Finsol COVID-19 support.

Government assistance

The New Zealand Government has released $12.1 billion scheme to support employees, employers, and individuals through the COVID-19 pandemic.

Government support package for individuals

If you’re an employee, self-employed worker, a contractor, or a sole trader, you may be eligible for the COVID-19 Wage Subsidy Scheme. There is also support available for individuals and households who are struggling due to COVID-19.

The government package includes:

• Wage subsidies for eligible employers
• Leave and self-isolation support
• Boosts to government benefit payments
• A double Winter Energy Payment for eligible New Zealanders

If you’re employed, your employer will facilitate your wage subsidy application. It is illegal for your employer to receive the wage subsidy and not pass it on to their employers. You can search online to see if your employer has applied for the wage subsidy.

Government support package for businesses

The New Zealand Government has released a package to help cushion the effect of COVID-19 on businesses.

The package includes:

• A wage subsidy scheme to help you pay wages and retain your employees
• Sick leave and self-isolation support
• Business cash flow and tax measures

Business Finance Guarantee Scheme

In conjunction with participating banks, The Government has released a $6.25 billion finance scheme for small and medium-sized businesses to protect jobs and support the economy. Targeted new loans (including increases to existing limits) are available for eligible businesses who have experienced hardship caused by COVID-19.

• COVID-19 Work and Income
• Employer wage subsidy calculator
• Employer search tool
• Business Finance Guarantee Scheme

Tips for business owners

We’ve put together a list of tips to help business owners in times of uncertainty:

Cash flow

Monitoring and tracking cash flow is a good business practice in the best of times, but now is the time to create a few different cash flow projections, so your business is prepared for the worst. If you need some extra assistance, speak to your bank.

Expenses

Give your expenses a thorough overhaul and think about which costs can be reduced or eliminated. If you’re renting commercial premises, speak to your landlord about rent relief.

Customers and clients

Maintaining communication with your customers and clients is vital during times of uncertainty. Keep your contact open and honest.

Sales and marketing

Stay connected with your customer base and prospects, and rather than focusing on the hard sell, consider how you can offer value and support during this unusual time.

Your team

Now’s the time to streamline your work processes to help your team work well remotely. Responsibilities, tasks, and work hours may change over this time; be prepared to be flexible, and offer extra support to help your staff adjust to a new way of working.

Share reliable information on COVID-19, and keep everyone updated regularly. Keep the morale up with regular communication, and show your team that they are valued during this difficult time.

Assess your supply chain

The world is in various stages of disruption, so it’s a good idea to make plans to safeguard your supply chain. Could you order larger quantities or contact alternative suppliers?

KiwiSaver

The stock market isn’t immune to the coronavirus outbreak, but it’s key to avoid making any rash decisions.

Over the last few years, investors have seen their shares go mainly one way: up. Investors, media and the public have become used to seeing the value of shares grow very strongly, with minimal downward movement.

But in the short term, markets go up, and markets go down – sometimes both on the same day. Back in 2018, the markets reacted to a trade war threat with China, which was hyped up by the media. This time, it’s a similar situation with the media reports of the coronavirus outbreak.

Choosing the right fund

We cannot stress this enough: don’t panic and suddenly change your investment fund  just because the value has dropped a little.

It may be a good time to check out an online risk profile questionnaire to ensure the fund you are in is still the right fit for you based on your time horizon and appetite to risk. Make sure you have chosen your fund based on this, as opposed to a fund with the best historical returns.

If you’re still unsure, you could have a chat with a financial adviser. They can help you with the risk profile results and talk through anything else that might be on your mind.

• KiwiSaver risk profiler

Sorting your budget

Everyone can benefit from a budget, not just people who are having trouble making ends meet. Budgeting will give you a sense of control over your finances, and will allow you to plan ahead,ticking off goals like eliminating debt and creating savings along the way.

It’s an excellent time to complete a full assessment of your outgoings. Check out the budgeting tool from Sorted. It’s an excellent starting point for anyone wanting to get a handle on their finances.

• Sorted budgeting tool