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.
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.
Recently we caught up with sisters Gracey and Holly from Ferndale Furniture, Wellington. The sisters share their story of growing up in a home of entrepreneurs and independent thinkers to a family business playing to its strengths.
Interior Systems Industry Advocate, Helen Hines-Randall, chats to Leon Downes, GM of Prestige Ceilings & Linings Ltd and a member of BCITO’s Interior Systems National Advisory Group.