28 May, 2020
The economic response to COVID-19 from March forms a backdrop to the Budget. Although the Budget does not introduce any new tax measures, it builds on the business support strategies:
- A $3.2b extension to the Wage Subsidy for a further 8-weeks (further to the 12-week period of the existing scheme) for those who, in the 30 days before application, suffered a 50% reduction in turnover compared with 2019.
- Broader refundability for Research and Development (R&D) tax credits is followed up with a $150m short-term temporary loan scheme for R&D. As incentive to businesses to continue investment for future growth, the loans provide one-off finance.
- Assistance to exporting firms in a $216m boost to New Zealand Trade and Enterprise.
- Lockdown spurred businesses to add or grow online operations. $10m is earmarked for small businesses to improve e-commerce capability.
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