Source: MIL-OSI Submissions
BusinessNZ says National’s proposals for business support would help build investment and confidence.
Chief Executive Kirk Hope says National’s proposals for cash grants, low-interest loans and a higher cap on depreciation are sensible options.
National is proposing GST refunds as a cash grant for qualifying businesses that have a 50% revenue drop over two months – similar to the Government’s cash-back scheme which gives a refund if a firm has a 30% drop across 1 month’s revenue.
National also proposes 5-year Government loans up to $250,000 at 0.7% interest for firms that paid more than $100,000 in GST over the second half of last year.
And National would raise the limit on investments that businesses can depreciate against their annual tax bill to $150,000, compared with the Government’s new proposed cap of $5,000, for two years.
Mr Hope said a higher depreciation cap would incentivise firms to make investment decisions and would provide a boost for investment generally.