Government Business Assistance
Financial support for businesses
To see what financial support schemes are available to help businesses and their employees to recover from the effects of COVID-19, please
click here.
Apprentice support
The Government has announced a $1.6 billion Trades and Apprentice package commencing 1 July 2020. This package includes a $300 million investment to support free trades training in critical industries, like building and construction, over the next two years to help people who have lost their jobs retrain, and also allow new employees in some essential services to train on the job.
Apprenticeship Boost Initiative
Support will be available to employers of first and second year apprentices in a Tertiary Education Commission-approved New Zealand Apprenticeship or Managed Apprenticeship programme.
The amount that can be claimed will vary depending on when an apprentice started their training programme and when they reach 24 months. Employers can claim:
- $1,000 a month for eligible apprentices in the first 12 months of their training programme
- $500 a month in the second 12 months of their training programme.
Funding will be available until April 2022. Employers are required to top up the funding they receive to ensure their apprentices receive at least the minimum or training wage they are legally entitled to.
For more information, click here.
Government Tax Announcement
The Government have announced a range of relief measures targeted for small to medium businesses. These changes include:
- $3.1 billion tax loss carry-back scheme. That allows businesses to access their previous tax payments as cash refunds. This means a forecast loss in the current financial year can be offset against the tax paid on a profit from last year.
- ‘In-principal’ changes to the tax loss continuity rules, gives taxpayers raising capital a level of certainty to undertake these transactions.
- Expanding the business consultancy support from the Regional Business Partner Network. Businesses will be able to access free, tailored specialist support for a range of issues they may have.
- IRD will have greater flexibility to modify timeframes or requirements for businesses. This could include, for example, extending deadlines for filing tax returns and paying provisional and terminal tax.
To read more on the IRD website click here.
Mortgage Holiday Scheme
Small to medium business and personal mortgage holders can apply to their banks for a six-month principal and interest payment holiday whose incomes have been affected.
For more information
click here.
Immediate tax deductions for low value assets
From April 1st, businesses can fully deduct the cost of low-cost assets when they are purchased. There is a temporary threshold increase from $500 to $5,000 (the new permanent threshold is $1,000).
For more information
click here.
Increased threshold for provisional tax
From April 1, the threshold for provisional tax will lift from $2,500 to $5,000. This measure will reduce cash flow pressure and compliance costs by allowing businesses to defer their tax payments.
For more information
click here.
Relief on interest for late tax payments
For businesses severely financially impacted by COVID-19, IRD will potentially waive the interest on late tax payments.
For more information
click here.