16 March 2020
We welcome the business continuity package which has been announced by the Government today. This will significantly help businesses to keep operating during this coronavirus outbreak.
All applications for the support package can be made directly with the Ministry of Social Development, details are below.
Wage subsidies applications:
Leave payment scheme - 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).
The Ministry of Social Development is looking after the processing of these payments, and you can find out how they can help here.
The Work and Income Covid-19 Employers Helpline number is 0800 778 008.
If you need any assistance, please talk with our lawyers here, or phone us on 0508 656 757.
David Browne | Senior Solicitor/Legal Team Manager | 03 456 1812 | 021 225 6938 | firstname.lastname@example.org
Adam Siwerski | Solicitor | 03 456 1809 | 021 756 809 | email@example.com
Stu Adamson | Solicitor | 021 197 4603 | firstname.lastname@example.org