Businesses hard hit by the red light setting and Omicron will be able to get some relief from a new Government support scheme outlined by Finance Minister Grant Robertson. 

The new Covid Support Payment of a maximum of $24,000 will be made available for businesses struggling with a business downturn during the red light setting and the Omicron outbreak. 

Each payment is $4000 per business plus $400 per full-time employee. It will be capped at 50 FTEs or $24,000. Businesses have to show a 40 per cent drop in seven consecutive days within the six weeks prior to the shift to phase 2 of the Omicron response on February 15. 

Businesses can apply for the first payment from February 28 and payments start from March 1. 

It is available fortnightly basis for six weeks – three payments in total. 
Robertson said that reflected the expected timing for Omicron to peak and ease again. 

"We will continue to closely monitor the situation and have the option to extend the payment if this if necessary." 

Robertson said he had been monitoring the impact of the traffic light system on businesses and the economy, and while most businesses could open and operate relatively normally there had been drop-offs in business for many. 

"We can see that the majority of the economy is operating close to normal, but in some sectors, like hospitality and events, there has been a significant drop-off in business. There are a range of reasons for this, but it is clear that the impact is putting a number of viable businesses at risk of not being able to operate." 

Robertson said the higher revenue loss threshold was to target those most affected. 

"We looked closely at whether we could offer sector specific packages but the definition of who is in what sector, and the need for cashflow to be provided quickly meant that was not a feasible option to reach the most affected," Grant Robertson said. 

Revenue Minister David Parker said changes were also being made to the Small Business Cashflow Loans Scheme to increase the amount of funding available to eligible businesses through the introduction of a "top-up" loan.