Here are some highlights for business from today’s budget. More info can be found at www.beehive.govt.nz.
More detail is still to come from the Government, and when it does we are happy to talk with you about what could specifically benefit you.
Wage subsidy extension: applications open June 10;
The wage subsidy will be extended by a further eight weeks. This time it is more targeted – to get an extension, you have to prove you’ve suffered a 50% decline for a 30-day period, compared to last year. The amounts are the same as last time, and it will again be paid in a lump sum. Some high-growth new firms will also be eligible.
A $400 million Tourism Recovery Fund will largely help businesses pivot towards the domestic and Australian markets.
There are investments in the primary sector aimed at supporting more than 10,000 people into jobs.
Managed by Callaghan Innovation, $150m is for short-term loans to encourage companies to press ahead with R & D projects that might otherwise be cut. Up to half of businesses’ qualifying R & D expenditure will be subsidised, up to a cap of $100,000 per firm.
There is a variety of initiatives for exporters, including an increase in support from NZTE to connect with overseas markets and global partners, including ‘boots on the ground’ while international travel is restricted. More digital support is available through NZTE’s scaled up e-Commerce Centre of Excellence.
A new Centre of Excellence in Logistics will build firm capability in freight and logistics for the medium term, and help build capability within export firms.
A new fund will encourage e-commerce, train more digital advisors and provide information and support for SMEs wanting to incorporate e-commerce into their business models. This investment is supported by $12.5 million to progress the trans-Tasman e-invoicing regime between New Zealand and Australia.
More investment is being put into business.govt.nz to work partners to deliver tailored recovery guidance and advice. Resources will focus on how to: forecast and manage cash flow and adapt businesses, obtain finance to meet needs now and for future growth, market businesses here (especially tourism) and globally, adopt new digital technology, including e-commerce and productivity enhancing tools, and deal with isolation and mental health issues.