Details on the government support package and how to apply
Economic response package and eligibility
Government support for businesses affected by COVID-19 currently includes:
- Covid-19 leave scheme
- business finance guarantee scheme
- business cash-flow and tax measures
- small business cash-flow loan scheme
- insolvency relief for businesses
Leave and self-isolation support
Workers and businesses have responsibilities to prevent the spread of COVID-19. The purpose of the COVID-19 leave and self-isolation scheme is to support workers financially to self-isolate, or while ill with COVID-19.
Business cash flow and tax measures
There are a number of business cash flow and tax measures that have been announced, including:
- Giving Inland Revenue the discretion to remit use-of-money interest (UOMI) for customers significantly adversely affected by COVID-19.
- Increasing the provisional tax threshold from $2,500 to $5,000 from 2020/2021.
- Increasing the small asset depreciation threshold from $500 to $1,000 — and to $5,000 for the 2020/21 tax year.
- Allowing depreciation on commercial and industrial buildings from 2020/2021.
- Removing the hours test from the In-Work Tax Credit (IWTC) from 1 July 2020.
Inland Revenue has more information on the business cash flow and tax measures.
Wider $12.1 billion package
There are further parts to the wider $12.1 billion package that you may be interested in, including income support and further investment in the health response.
Source: business.govt.nz - updated 7 September 2020