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PKF Rutherfords Ltd
Accountants & business advisers- PKF Rutherfords Ltd, Palmerston North, New Zealand
Chartered Accountants & Business Advisers

COVID-19 Business Support Package

The government has announced a business continuity package in response to Covid-19. The goal is to cushion the blow for businesses and workers and position for recovery. The most immediate opportunity will be to claim the wage subsidy if your business has already experienced a significant downturn in sales, and for some businesses this will be starting to bite now. This subsidy is not without hooks, so it's important to talk through your situation before you jump into this.  

The $12.1 billion package includes:

  1. $5.1 billion in wage subsidies - available for businesses that have had a 30 percent decline in revenue, compared to the same period last year. Eligible businesses will receive $585.50 per week for full-time staff, and $350 for part-time staff. (up to a total of $150,000 per business).
  2. $2.8 billion increase to income support - an extra $25 per week for all main benefits (approx 350,000 families) and the 2020 winter energy payment will be doubled, affecting approximately 850,000 recipients.
  3. $2.8 billion in business tax changes to free up cashflow - including a provisional tax threshold lift from $2,500 to $5,000, the reinstatement of some building depreciation and writing off interest on some late payment of tax.
  4. $126m in COVID-19 leave payment scheme and self-isolation support - eligible businesses will receive the same rates as the wage subsidy for those who are unable to work because they are in self-isolation, sick with COVID-19 or caring for dependents. The subsidy is not eligible for those who can work from home.
  5. $100m for redeployment - supporting worker redeployment programmes.
  6. $600m initial aviation support package - (Air NZ will be on top of this)
  7. A $500 million boost for health - for health staff, virus testing, medicines and face masks, extra intensive care capacity and equipment at hospitals, as well as more money for GPs.

Grant Robertson said they will be actively discussing working capital support for small and medium businesses and tailor-made support for larger and complex businesses.

We can talk you through the details on what you may be eligible for and ways to moderate the stress on your business.

 

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