The re-elected New Zealand Labour government has moved to make changes to the Small Business Cash Flow Loan Scheme implemented soon after New Zealand’s lockdown response to Covid-19.
Firstly, applications for the loan have been extended by 3 years. That means that applications can be made for the loan right up to 31 December 2023.
New Zealand has recorded the first Covid-19 positive tests and the country has gone straight and to control. The tests show that this is a newly introduced strain of the virus and has no links to suggest that there has been any dormancy or re-emergence of the virus last experienced by the community some 102 days ago.
Although Auckland was put into Level 3 for 3 days this has now been extended and Auckland will remain in a mostly locked down situation for another 11 days, making up one incubation cycle.
So what does this mean for Auckland businesses?
After frustration with the New Zealand banks who have been dragging the chain in regard to extending loans to small businesses, Inland Revenue has been directed to fill the breach. And it has all happened by accident.
Loans of up to $100,000 will be available, interest-free, for businesses suffering as a result of the Covid-19 outbreak.
Inland Revenue has issued a public statement with regard to issues being faced by New Zealand businesses who are facing challenges in exporting their products to Australia as a result of the COVID-19 pandemic.
Usually a supply of goods exported within 28 days of the “time of supply” is zero-rated for GST purposes. This means GST is applied at the rate of 0% and is therefore free of New Zealand GST.
New Zealand is getting ready to open up for business. From midnight on Monday, 26 April 2020 New Zealanders will be able to open their doors and have a peek outside to a very changed world.
Employees should continue to work from home, if possible. But you will be able to open your New Zealand business premises, if you can do so safely.
The workplace needs to be operating safely. That means it needs to comply with the Alert Level 3 criteria.
As a further response to the impact that Coronavirus is having on New Zealand businesses, further tax concessions have been announced by the New Zealand Government.
These concessions will allow New Zealand businesses to offset forecast losses against income recorded in previous years on which New Zealand income tax has been paid.
Since the New Zealand government announced the wage subsidies there have been some changes to the terms and conditions so we thought it was time to bring you up with the latest including how to apply.
In this article we summarise the amounts you can receive, the conditions that attach to it, your obligation to retain workers and the details of your company that will be available to the public as a result of your application.
We have previously reported that Inland Revenue are responding to the impact that Covid-19 is having on New Zealand businesses by allowing deferrals of tax that would ordinarily be payable but is proving a challenge as a result of current business conditions.
The New Zealand government considers it essential that businesses continue to file returns as that is providing information with regard to the difficulties faced by businesses and the general economic outlook. Therefore the areas of relief relate to any late payment penalties rather than late filing penalties.
New Zealand’s Inland Revenue has confirmed they will be continuing with the planned shutdown over the Easter break while they complete the migration of the remaining systems still hosted on Inland Revenue’s old tax system to their new tax system.
Their core systems will be down from 3 PM (New Zealand time) Thursday, 9 April 2020 and expect to come online Thursday, 16 April 2020.