How are you faring?
These are strange times. The anxiety levels correlate perfectly in line with how closely we are following updates. Here our Jolt we have tried hard to balance being informed, with being taking some time-out from it. If all else fails, we are going fishing. We are lucky, work remotely and are now holding our meetings online, we hope you are able to adapt too.
We have been working closely with our clients to communicate what the governments’ financial announcement means. We suggest taking the time to digest this information and call your accountant if you need help. Here is the low down:
The government announced a $12.1 billion financial package to counter the impact of the corona-virus on the New Zealand economy. It has been described as “the most significant peace-time economic plan in modern New Zealand history”. Yesterday Finance Minister Grant Robertson outlined the package to support New Zealanders and their jobs.
“This package is one of the largest in the world on a per capita basis. It represents 4.0% of GDP and is more than the total of all three Budgets’ new operating spending in this term of Government put together. The global economic impact of COVID-19 on New Zealand’s economy is going to be significant, so we are acting now to soften that impact.”
The $12.1 billion package includes:
- Initial $500 million boost for health
- $5.1 billion in wage subsidies for affected businesses in all sectors and regions, available from today. Businesses need to show a 30 percent decline in revenue for any month between January and June 2020, applications can be made here.
- $126 million in COVID-19 leave and self-isolation support
- $2.8 billion income support package for our most vulnerable
- $100 million redeployment package
- $2.8 billion in business tax changes to free up cash flow
- $600 million initial aviation support package
For more detail on the business support package and Government factsheets, see here.
Staying well informed
Keeping reliably informed, understanding the symptoms of COVID-19, staying up to date with developments and making sure your business is as prepared as possible will help you make better decisions.
MBIE has collated some great resources for businesses here that we recommend reading through. This includes everything from health and travel guidance, to how to create a business continuity plan.
Stay informed, stay well, stay positive
It’s important to stay informed and reach out for advice as needed. Although our businesses are going to feel this the most important priority is staying well. Work at home where you can and try to stay positive.
Take care out there everyone.