02 July 2020
The Minister for Treasury and Resources, Deputy Susie Pinel, has today signed a Ministerial Decision making several amendments to the Government Co-Funding Payroll Scheme (CFPS).
The first amendment gives businesses more flexibility over how they demonstrate a loss in turnover. When the scheme was originally launched, businesses were only eligible if they could demonstrate a drop in turnover of 30% in the previous month.
Following the updated guidance, businesses will now qualify if they can demonstrate a 30% drop in turnover over a three-month period, when compared to the same period in 2019.
This change has been designed to allow for fluctuation in trading conditions month-on-month. It is also designed to ensure that the scheme is only accessible to businesses which have been negatively affected by COVID-19.
The second change to the scheme allows Holiday Clubs to apply to the scheme, provided they meet all the eligibility criteria
. This change has been made to ensure that holiday clubs are able to open to provide childcare during the school holiday period.
Both changes are effective for claims for June 2020 onwards. Applications for June open today, Wednesday 1 July.
Senator Lyndon Farnham, Minister for Economic Development, Tourism, Sport and Culture, said: “We continue to review and improve the payroll support scheme in response to the changing circumstances businesses find themselves in.
“This is unchartered territory for the island its businesses and, inevitably, unforeseen issues arise as we progress. It is important that the Government monitors the impact, is responsive, and is ready to evolve the scheme if necessary.”
The CFPS has been extended to at least August 2020 and the future of the scheme remains under review by Ministers. In considering the future of the scheme, Ministers will balance the ongoing need to make prudent use of public money with the importance of giving certainty to business, and the importance of avoiding a cliff-edge to any financial support.