VIRUS: PrintNZ issues Kiwi assistance guidance
New Zealand print business owners' association PrintNZ has issued a comprehensive guide to accessing support and assistance during the growing coronavirus crisis.
The government assistance available includes wage subsidies, virus sick leave and self-isolation support, provisional tax deferment, and low value asset deductions.
The government subsidy package provides NZ$8.7bn of support to businesses. Below is a summary of what is available and links to the appropriate application forms. These subsidies are open for application immediately.
Wage Subsidies – NZ$5.1bn
The wage subsidies will be available for businesses in all sectors and all regions that can show a 30 per cent decline in revenue for any month between January and June 2020 compared to the year before (including projected revenue). If eligible, employers would be paid NZ$585.80 per week for full time staff, and NZ$350 for part time. Payments are capped at NZ$150,000 per business which equates to 21 employees. They will be paid in a lump sum. The support will be available for twelve weeks with applications open today. Businesses must have taken active steps to mitigate the impact of Covid-19 (e.g. engaged with their bank) and sign a declaration form to that effect. For a fact sheet click here. Applications can be made from today for the next 12 weeks. Click here to apply.
Covid-19 leave and self-isolation support – NZ$126m
The Covid-19 leave payment scheme will provide support for those people unable to work because they are in self-isolation, are sick with Covid-19 or caring for dependents who are in either of these situations. The payments will be equal to the rate of the wage subsidy scheme but available for a maximum of eight weeks. Employers will be expected to meet all of their sick leave and other employment expectations. For a fact sheet click here. Click here to apply.
Fewer small businesses having to pay provisional tax – NZ$4m
From 1 April 2020 the threshold for provisional tax will lift from NZ$2500 to NZ$5000. This measure will reduce cashflow pressure and compliance costs for small taxpayers by allowing roughly 95,000 businesses to defer their tax payments.
Immediate deductions for low value assets – NZ$667m
Immediate expensing allows businesses to fully deduct the cost of low-cost assets when they are purchased, with the threshold for the write-off currently at NZ$500. We are putting in place a temporary increase in the threshold to NZ$5000 for one year, reverting to NZ$1000 in the longer term (still higher than the current NZ$500 threshold), which will reduce compliance costs for businesses. It will also have the side-benefit of stimulating business purchases.
For a full list of the business cashflow and tax measures click here.
There are a number of other initiatives including increases to benefits, removal of stand-down periods, redeployment packages and boosts to health and aviation.