COVID-19 Small Business Cashflow Scheme (SBCS)


If you have qualified for the wages subsidy, you should be able to apply the SBCS from 12th May 2020 through IRD MyIR log in: i.e. your income is down 30% in a single month this year compared to last year as a result of Covid-19 and you can be a sole trader, business owner or self-employed.

Details of the loans include:

  • $10,000 to be provided to every business
  • an additional $1800 per equivalent full-time employee, captured at 50 employees
  • interest free if the loans are paid back within a year
  • an interest rate of 3% for a maximum term of five years
  • repayments not required for the first two years.

如果你满足了前段时间申请工资补贴的条件,那么您应该也可以申请到IRD 5月12号即将开始受理的一次性扶持贷款,您可以是Sole Trader, Business owner or Self-employed,满足以上条件都可以申请。

如果您的生意由于疫情导致收入比去年同期减少了30%,那么你可以申请到总金额为:$10,000 + $1800 X 全职员工人数 的贷款。(这里最多支付到全职员工人数50)


Please check IRD website for more details, 具体细节可以参考一下链接:

If you have not registered MyIR, please check the link below. 如果您还没有注册MyIR,请点击以下链接申请注册



COVID-19 Employer Wage Subsidy

Regarding government’s latest updates on 28 March 2020, 6:20pm. Wages Subsidy has few changes as below

What’s new?

• $150,000 cap was removed, so if you have under applied the subsidy because of this $150k cap, you can apply the subsidy for rest of the employees now

• Sick leave subsidy was removed, if you have applied for it earlier, you will still get paid for it. However, you can still apply the normal wages subsidy for this employee once 14 days sick leave subsidy was used up.

• You need to try your best to maintain at least 80% of your employee’s normal pay. However, if you are struggle to maintain 80% of their normal pay, at least you need to pass 100% of wages subsidy to the employee

• If your employee’s normal pay is less than the subsidy payment, you just need to pay your employee their normal pay, and keep the extra money in your “pool” for other employees’ pay.


• When paying your employee during this lock down period, you still need to use your normal payroll system and pay your employees on the normal pay day. You don’t need to pay them 12 weeks up in front like government pays you.

• Wages subsidy is GST exempt, please leave this transaction unreconciled if you are doing your own bank reconciliation and not sure what to do, we will sort it out for you.

• If you received wages subsidy, you can not used employee’s annual leave balance for the first $585.5 they earned, unless the employee agreed to used their annual leave to top up the balance and receive FULL amount of their normal pay.

• From 1st April 2020, any pays falls after that date, minimum wages is $18.90 per hour, please check if anyone on your payroll is on minimum wages, and their rate need to be updated to $18.9 per hour even the related pay period was before 1st April.

• Wages subsidy is paid as lump sum up in front to your bank account, please DO NOT spend that money on something else! This is to cover your future 12 weeks payroll payment.

What if...Example

• Julie was on $17.7 per hour and used to work 40 hours a week but she is not working at all since lock down, the next pay (after 1st April 2020) she will be on $18.90. Since you have applied full time wage subsidy for her, you need to enter 30.98 hours (585.5/18.9) worked and system will deduct her PAYE, student loan, Kiwisaver, etc. as normal.(you can pay her 80% if you can afford it which is 80% x 18.9 x 40 = 604.8, since government subsidies $585.5, you only need to top up the balance of $19.3)

• David was on $20 per hour and used to work 10 hours a week only, since government has paid you $350, you only need to pay him 20*10 = $200 (in this case, you can afford paying him 100% rather than 80%), you can keep the extra $150 in your “pool” for others’ pay for example Julie’s $19.3 can be covered by David’s overpaid subsidy.

• Amy was required to work from home during lock down, her hourly rate is $30 and she worked 30 hours a week, you need to pay her what she entitled $900 since she actually worked. However, government covers $585.5 for her pay, and you only pay the difference.

• If you applied wages subsidy earlier and did not realised your business actually was super busy during lock down period, and was not suffer 30% or more decrease in income,. You need to contact Work and Income straight away and return the wages subsidy.

Stay safe and well!