The Government has introduced a number of key measures to reduce the impact of the COVID-19 pandemic on businesses:
- Wage subsidy scheme – businesses may be eligible for wage subsidies ($585.80 (gross) per week for full time staff, $350 (gross) per week for part time staff) if certain eligibility criteria are met. For more information on the eligibility criteria and how to apply for the wage subsidy scheme, please visit: https://workandincome.govt.nz/products/a-z-benefits/covid-19-support.html?utm_source=business.govt.nz&utm_medium=newsletter&utm_campaign=special_cv_edition#null
- Tax relief measures – tax relief may be available for businesses experiencing a downturn in business due to COVID-19. These measures include instalment arrangements, write-offs due to serious hardship, early refunds based on provisional tax estimates/re-estimates and extensions to filing dates for some income tax returns. For more information on the range of tax relief measures available, please visit the IRD website: https://www.ird.govt.nz/covid-19-novel-coronavirus/tax-relief/tax-relief-for-businesses
- Support for Māori businesses – following a needs assessment for Māori businesses, the Government plans to implement a Māori business response plan to provide targeted support to Māori businesses in the face of the COVID-19 pandemic.
- Business Finance Guarantee Scheme – the Government has announced a Business Finance Guarantee Scheme to support solvent small and medium-sized businesses temporarily affected by COVID-19. The specific details of the scheme are yet to be finalised, however, when these are announced, we will update you here: https://www.heskethhenry.co.nz/insights-opinion/covid-19-business-finance-guarantee-scheme/
The latest government information for businesses in relation to COVID-19 can be found on the business.govt.nz website: https://www.business.govt.nz/news/coronavirus-information-for-businesses/. We suggest that this is reviewed on a regular basis to ensure that you have the most up to date information.
If you have any questions about the article, please get in touch with our business advice team or your usual contact at Hesketh Henry.
Disclaimer: The information contained in this article is current at the date of publishing and is of a general nature. It should be used as a guide only and not as a substitute for obtaining legal advice. Specific legal advice should be sought where required.