Eligibility criteria for SBCS updated
Due to the extension of the Small Business Cashflow (Loan) Scheme application period until the end of 2023, the eligibility criteria has now been updated, with the amendments effective 28th January 2021.
There are four primary changes to the eligibility rules:
- Business establishment date: business or organisation must have been in operation for at least six months pre application date, and all employees must be working legally in New Zealand.
- Revenue decline: In the six months prior to application, there must have been a 30% decline in revenues over a fourteen-day period compared to the same fourteen-day period in the previous twelve months, and there must be evidence held to verify that the decline was Covid-19 related. The business must be viable and have a plan to ensure that it remains so.
- Employee number test: Business must have 50 or fewer FTE employees, and if part of a commonly owned group, then it is the group that must have the 50 or fewer FTE’s.
- Re-borrowing: If a loan is repaid prior to the end of 2023, then the business can apply for one more loan. However, any business that has defaulted on a loan will not be eligible to re-borrow.
Specified livestock values released
IR has released the latest livestock values determination – “National standard costs for specified livestock determination 2021”.
The determination is made in accordance with section EC 23 of the Income Tax Act 2007 and applies to any specified livestock that the taxpayer has on hand at the end of the 2020-21 income year, and where the taxpayer elects to value their livestock under the national standard cost scheme for the 2020-21 income year.
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