COVID -19 Relief Summary

 

The New Zealand government’s response to COVID-19 has been commended by leaders and citizens across the world.

 

The government took both precautionary measures required to ensure the health and safety of its citizens while also providing businesses with all-round support for a smooth recovery from the financial detriment that occurred.

This included support was categorised into five main sections: people, property, leave, tax and cash flow.

 

People

  • Wage subsidy program: Provided businesses with wage subsidies so that businesses were able to retain their employees.

  • Consultancy support: Assisted businesses with understanding and managing impacts of COVID-19 and planning for recovery.

 

Property

Commercial property law changes: Commercial tenants and landlords were able to keep their leases in place during recovery.

 

Leave

Leave support scheme: Financial assistance provided to workers who were required to self-isolate due to the pandemic.

 

Tax

Tax administration act changes: Businesses helped with cash flow and stability by making the tax requirements more flexible.

R&D tax incentive: Help businesses retain their R&D capacities during COVID-19 and receive their tax credits faster.

Depreciation tax deductions: Increased the low-value asset threshold and allowed deductions for commercial and industrial buildings to help businesses with cashflow and reinvestment.

Remission of penalties and interest: Reduce the pressure on taxpayers who are

facing interest and penalties for late tax payments due to COVID-19.

 

Cash flow

Small business cash flow loan: A quick and low-cost loan that can help businesses manage cash flow.

Business finance guarantee scheme loans: Participating banks are able to provide businesses with operating cash flow needs and response or recovery projects due to COVID-19.

Temporary tax loss carry-back: Businesses are able to use tax losses to offset prior-year profit.

Business debt hibernation: Allows businesses to place their existing debts on hold while they recover from financial difficulties caused by COVID-19.

Businesses that feel they would benefit from these schemes should research any contingencies and eligibility requirements before applying.

 

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