Source: MIL-OSI Submissions
BusinessNZ Chief Executive Kirk Hope said the business continuity package announced by the Government will substantially help businesses keep operating through the period of the coronavirus outbreak.
He said the wage support and tax measures were well-focused on key areas of need:
Wage subsidies (applications via MSD)
– $558 per week for full-time worker
– $350 per week for part-time worker
Leave payment scheme (applications via MSD) – sick pay at $585 per week for full-time workers and $350 per week for part-time workers for those who contract Covid-19, for 14 days for those self-isolating, and for the entire period of sickness for those who contract Covid-19. This is for all employees, self-employed and contractors (but not for those who can work from home), if the business has had a 30% or greater decline in revenue due to Covid-19 month-on-month for any month between January and June 2020.
Depreciation – reinstatement of depreciation deductions for commercial and industrial buildings (including for seismic strengthening) at 2% (a permanent change).
Provisional tax – threshold increased from $2.5k to $5k (a permanent change).
Writing off interest on late payment of tax – IRD may remove use of money interest for any tax debts incurred after 14 February, including provisional, PAYE, GST, if the business has been significantly impacted by Covid-19 (for 2 years).
Immediate deductions for low-value assets up to $5,000 (for a year, then $1,000 thereafter).
Mr Hope said the package would provide much-needed breathing space and support for all businesses.
“BusinessNZ will continue to represent the concerns and needs of business to the Government over this testing time,” Mr Hope said.