Infographic: A small business guide to the NZ economic stimulus package

Home Blog Infographic: A small business guide to the NZ economic stimulus package
Infographic: A small business guide to the economic stimulus package | Prospa NZ
23 March 2020 | 1 min read

As many small businesses across New Zealand face economic uncertainty as the global coronavirus pandemic bites, the New Zealand Government has promised wage subsidies and tax relief.

Here’s what you need to know about the economic stimulus package.

Updated: 27 March 2020

COVID-19 NZ economic stimulus package

As governments across the world move to support their countries’ economies by pumping funds into them, New Zealand’s response has emerged among the most generous.

More than $12 billion has been pledged, or around 4% of annual GPD. Almost three-quarters of the funds are earmarked to support business and jobs, in two key ways: wage subsidies and tax relief.

Wage subsidies

The wage subsidies are aimed at any employers significantly impacted by COVID-19 and struggling to keep staff on as a result, as well as self-employed and sole traders.

The subsidy is worth $585.80 a week for a full-time employee or $350 for a part-time employee, paid as a lump sum covering 12 weeks. There is no cap on the amount paid to employers.

For example, if a Queenstown tourism operator with 20 permanent part-time employees saw a significant drop in forward bookings because of the travel ban, they could apply for the subsidy and receive up to $84,000 (20 part-time employees at $350 a week multiplied by 12 weeks).

Those funds would then be used to pay those employees for the next three months.

Tax relief

The has also been an increase in the threshold for an immediate deduction on asset purchases, an increase in the provisional tax threshold and a waiver on late tax payments.

Sign up to the Prospa Blog newsletter for more small business news and tips.

The information on this website is provided for general information only and does not take into account your personal situation. You should consider whether the information is appropriate to your needs, and where appropriate, seek professional advice from financial, legal and taxation advisors. Although every effort has been made to verify the accuracy of the information as at the date of publication, Prospa, its officers, employees and agents disclaim all liability (except for any liability which by law cannot be excluded), for any error, inaccuracy, or omission from the information for any reason, including due to the passage of time, or any loss or damage suffered by any person directly or indirectly through relying on this information.

Keep reading

01 December 2023 | 3 min read

Tools and tips for cash flow management

Two cash flow management tools, plus tips for responding to dips in cash flow and encouraging long-term growth.

16 November 2023 | 4 min read

Small business tips for a successful year-end season

Manage supplier relationships, make cash flow management a priority, and other small business tips from a consultant for the holiday season.

09 November 2023 | 3 min read

4 apps and websites to manage cash flow

Access to a phone is all that’s required to have an accurate, real-time view of every aspect of your cash flow, from profits and unpaid bills to projected revenue.   But how can you best unlock such capabilities and manage your finances? These four digital tools are worth checking out.  1. The Prospa App The Prospa