The $12.1 billion coronavirus relief package announced today sees a $8.7 billion injection into business and jobs, including wage subsidies and tax changes.
The package comes as the Finance Minister told Parliament this afternoon a recession "is now almost certain" due to coronavirus.
Here's how the $8.7 billion dedicated to business and jobs breaks down:
The $5.1 billion for wage subsidies will go to any business that has had a 30 per cent or more decline between January to June 2020.
Employers would be paid $585.80 per week for full-time staff and $350 for part-time workers, with payments capped at $150,000 per business, and will be available for 12 weeks and paid in a lump sum.
She told TVNZ1’s Q+A this morning ahead of its release.
The $126 million set aside for coronavirus-related leave and self-isolation support for people unable to work will be equal to the amount paid for the wage subsidy scheme and available for up to eight weeks. It is estimated 27,000 workers could take it up every two weeks for the next eight weeks.
The redeployment package will see the Tairāwhiti region the first to benefit, with Mr Robertson saying that decision was due to the hard-hit forestry industry.
Tax changes for small businesses sees the threshold for provisional tax going up from $2500 to $5000.
Rotorua’s Mitai Māori Village founder Wetini Mitai-Ngatai is expecting numbers of visitors to dry up in the coming days and weeks.
Depreciation deductions for commercial and industrial buildings will be reinstated, interest will be waived on some late tax payments of businesses impacted by coronavirus, and there will be immediate deductions for low-value assets.
A temporary increase in the threshold will go up to $5000 for one year.
Simon Bridges said National supported the wage subsidy package, but said it was "not immediate enough".
Mr Bridges believes not enough of the $12.1 billion is being put into healthcare.
"Businesses and workers need relief now," he said. "Only about half of the total spending will actually go out the door in the next few months. The remainder will be spent slowly over the next four years.
"I am also concerned about how businesses with more than 21 full time staff will cope, with wage subsidy payments capped at $150,000," he said.
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