The Government has announced a $12.1 billion COVID-19 Economic Response Package for small to medium businesses and employees during this period of uncertainly.
Over $5 billion is available for wage subsidies and the COVID-19 leave payment scheme will assist self-employed and employees in self-isolation, who are ill with COVID-19 or are caring for affected dependents. An additional $2.8 billion will fund business tax changes that may assist your cashflow.
Wage subsidies are available for all businesses who can prove a 30% decline in revenue for any month between January and June 2020 compared to the year before (including projected revenue). If eligible, employers receive $585.80 per week for full-time staff and $350 for part-time staff for 12 weeks. An Extended Weage Subsidy can be applied for starting from 10th June 2020. Applications are open now. Find out more.
COVID-19 leave payment scheme
The COVID-19 leave payment scheme provides support for those people unable to work because they are in self-isolation, are sick with COVID-19 or are caring for dependents who are in either of these situations. The payments will be $585.80 per week for full-time staff, and $350 for part-time staff, available for a maximum of eight weeks. Employers can request backdating payments to 17 March 2020. Find out more.
Immediate tax deductions for low-value assets
From 1 April 2020, businesses can fully deduct the cost of low-cost assets when they are purchased. There is a temporary threshold increase from $500 to $5,000 (the new permanent threshold is $1,000).
Increased threshold for provisional tax
From 1 April 2020, the threshold for provisional tax will lift from $2,500 to $5,000. This measure will reduce cash flow pressure and compliance costs for small taxpayers by allowing roughly 95,000 businesses to defer their tax payments.
Relief on interest for late tax payments
For businesses severely financially impacted by COVID-19, IRD will potentially waive the interest on late tax payments.
Find out more about tax relief.
Small Business Cashflow Loan
There is Immediate support to small businesses and organisations. The Small Business Cashflow (Loan) Scheme has been introduced to support businesses and organisations struggling because of loss of actual or predicted revenue as a result of COVID-19. If you have 50 or fewer full time equivalent employees, you are eligible to apply for the loan between 12 May 202 and 12 June 2020. Learn how to apply.
Regional Business Network
The government has allocated additional funding to the Regional Business Partner Network to suppor New Zealand businesses and service providers during the COVID-19 pandemic. There are still resources available through the network to help businesses via free webinars, mentoring support and Growth Advisor Support. See what support you can receive here.