Government support package for businesses affected by COVID-19

Date: 18th March 2020

We know you’ll be getting so much information right now about COVID-19 so please bookmark this page and know that at any point, if you’re concerned, you can reach out to us. We have a contingency in place that should the need arise, our teams can work from home and be connected to you in the event that you need us.  

You may have heard about the financial support package announced yesterday. We have summarised the main points below and we are here to help you navigate through this process, help you to understand your eligibility and obligations, and assist you in applying for support.

$12.1 billion support package for New Zealand businesses

Finance Minister Grant Robertson has today announced a financial relief package for businesses and employees impacted by the COVID-19 pandemic.

Some of the key highlights of this package are:

  • $5.1 billion in wage subsidies for affected business in all sectors and regions, available from today.
  • $126 million in COVID-19 leave and self-isolation support.
  • $2.8 billion in business tax changes to free up cashflow, including a provisional tax threshold lift, the reinstatement of building depreciation on commercial and industrial properties and writing off interest on the late payment of tax.
  • Increasing the small asset depreciation threshold from $500 to $1,000 – and to $5,000 for the 2020/21 tax year.
  • Increasing the provisional tax threshold from $2,500 to $5,000 from 2020/21
  • IRD now have the discretion to remit use of money interest for customers significantly affected by COVID-19

For more information on these changes here are two links for you:

  1. The first is the press release from the government. This is the statement from our Finance Minister Grant Robertson and includes factsheets on business cashflow and tax measures, leave support, income support and the wage subsidy scheme: Government press release
  2. The second is a summary of the five proposals in the Business Continuity Package that relate directly to tax: Tax changes from the Business Continuity Package

Some of these points are quite meaty and take a little to digest. If you are unsure which aspects may relate to you and your business please give us a call.

Look after your employees

Employees are often your biggest asset and it is important to ensure that you are meeting all your obligations as an employer. The team at Sidekick HR have put together an information sheet of Q&A’s that outlines some of the key things that you as employers need to monitor including:

  • Health and Safety obligations
  • What happens to employees pay if they cannot work
  • Eligibility for the wage subsidy
  • Varying the terms of your employees’ employment.

More details on this can be found in this PDF: Sidekick HR Information Sheet. Sidekick HR can help you with any of these employment queries – if you would like to know more please contact the team using the phone numbers in the PDF or via their website:

Contact Sidekick HR

How can Sidekick help?

In our regional communities, we know many businesses will be needing assistance, especially those servicing the tourism and export industries. We’re here to help – whether that’s specific business advice, a general chat around current and future economic impacts or to formulate a business contingency plan – so please don’t hesitate to get in touch.

Posted in: Covid-19, Latest News