Government support available to businesses impacted by COVID-19

The Government has announced a $12.1 billion COVID-19 Economic Response Package for small to medium businesses and employees during this period of uncertainly. 

Measures that may benefit you

Over $5 billion is available for wage subsidies and the COVID-19 leave payment scheme will assist self-employed and employees in self-isolation, who are ill with COVID-19 or are caring for affected dependents. An additional $2.8 billion will fund business tax changes that may assist your cashflow. 

Read the full announcement.

Wage subsidies

Wage subsidies are available for all businesses who can prove a 30% decline in revenue for any month between January and June 2020 compared to the year before (including projected revenue).  If eligible, employers receive $585.80 per week for full-time staff and $350 for part-time staff for 12 weeks.  Applications are open now.  Find out more.

COVID-19 leave payment scheme

The COVID-19 leave payment scheme provides support for those people unable to work because they are in self-isolation, are sick with COVID-19 or are caring for dependents who are in either of these situations. The payments will be $585.80 per week for full-time staff, and $350 for part-time staff, available for a maximum of eight weeks. Employers can request backdating payments to 17 March 2020. Find out more.

Immediate tax deductions for low-value assets

From 1 April 2020, 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).

Increased threshold for provisional tax

From 1 April 2020, the threshold for provisional tax will lift from $2,500 to $5,000. This measure will reduce cash flow pressure and compliance costs for small taxpayers by allowing roughly 95,000 businesses to defer their tax payments.

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. 

Find out more about tax relief.

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