The government’s subsidy package provides $8.7 bn in support to business.
PrintNZ has responded rapidly to the announcements and has prepared information for businesses in relation to the subsidies, which have now opened, below:
Wage Subsidies – $5.1 bn
The wage subsidies will be available for businesses in all sectors and all regions that can show a 30 per cent decline in revenue for any month between January and June 2020 compared to the year before (including projected revenue). If eligible, employers would be paid $585.80 per week for full time staff, and $350 for part time. Payments are capped at $150,000 per business, which equates to 21 employees. They will be paid in a lump sum. The support will be available for twelve weeks with applications open today. Businesses must have taken active steps to mitigate the impact of COVID-19, for example, engaged with their bank, and sign a declaration form to that effect. Applications can be made from today for the next 12 weeks. Click here to view the application form
Covid-19 leave and self-isolation support – $126m
The Covid-19 leave payment scheme will provide support for those people unable to work because they are in self-isolation, are sick with Covid-19 or caring for dependents who are in either of these situations. The payments will be equal to the rate of the wage subsidy scheme but available for a maximum of eight weeks. Employers will be expected to meet all of their sick leave and other employment expectations. Click here to view the application form
Fewer small businesses having to pay provisional tax – $4m
From April 1, 2020, the threshold for provisional tax will lift from $2,500 to $5,000. This measure will reduce cashflow pressure and compliance costs for small taxpayers by allowing roughly 95,000 businesses to defer their tax payments.
Immediate deductions for low value assets – $667m
Immediate expensing allows businesses to fully deduct the cost of low-cost assets when they are purchased, with the threshold for the write-off currently at $500. The government has put in place a temporary increase in the threshold to $5,000 for one year, reverting to $1,000 in the longer term (still higher than the current $500 threshold), which will reduce compliance costs for businesses. It will also have the side-benefit of stimulating business purchases.
Pandemic Policy
A simple Pandemic Policy is available for PrintNZ members, which you can receive by emailing pam.seymour@printnz.co.nz.
The total package of $12.1bn aims to support businesses; increase benefits for seniors and low-income families; pay people who can’t work because of self-isolation; and boost virus testing and intensive care capacity.
Cick here to see PrintNZ’s latest newsletter in full
Useful Links:
https://www.who.int/emergencies/diseases/novel-coronavirus-2019
https://www.who.int/emergencies/diseases/novel-coronavirus-2019/advice-for-public
https://www.health.govt.nz/our-work/diseases-and-conditions/covid-19-novel-coronavirus
