COVID-19 – We are here to support your business
In light of current worldwide events relating to coronavirus (COVID-19), the Villa team would like to assure you all that we are here to support your business. We may face some uncertain times ahead, Villa will endeavour to keep you all updated on announcements that may impact your business.
This afternoon the New Zealand Government announced its business support package. The package worth a total of $12.1 billion includes an initial $500 million for the healthcare sector along with the following economic funding:
Wage Subsidies
$5.1 billion in wage subsidies for affected businesses in all sectors of the economy. The subsidy is available from today for businesses that are showing (or expecting to show) a 30% decline in revenue for any month between January and June 2020.
The COVID-19 Wage Subsidy will be paid to an employer in a lump sum and covers 12 weeks per employee. The subsidy is set at a flat rate of:
- $585.80 for people working 20 hours or more per week
- $350.00 for people working less than 20 hours per week
Self Isolation & COVID-19 Leave Payments
Self isolation wage subsidies are available to individuals who are required to self isolate for 14 days. In addition, if a person contracts COVID-19 and cannot work they will receive a subsidy for the duration of their illness. The subsidy also applies to carers who are caring for dependants who are in self isolation or have contracted COVID-19. Subsidy payments are the same amount as the employer wage subsidy:
- $585.80 for people working 20 hours or more per week
- $350.00 for people working less than 20 hours per week
If you are an employer, contractor, sole trader or self-employed you may qualify.
Find out more on the Work and Income website.
Business Tax Relief
The IRD has today released information in tax relief for businesses and individuals affected by COVID-19. Businesses can apply for a range of tax relief options, including installment arrangements, filing and payment extensions, or exemptions. The five main proposed changes are:
- The IRD has the discretion to remit use-of-money interest (UOMI)
- Increasing the provisional tax threshold from $2,500 to $5,000 from 2020/2021
- Increasing the small asset depreciation threshold from $500 to $1,000 – and to $5,000 for the 2020/21 tax year
- Allowing depreciation on commercial and industrial buildings from 2020/2021
- Removing the hours test from the In-Work Tax Credit (IWTC) from 1 July 2020
The tax changes vary based on business type and eligibility, Villa can help with navigating the tax relief options available to your business.
Find out more on on the IRD website.
As always, the Villa team is here to help you. If you have any questions about subsidies or tax relief please contact us.