Budget 2020: Rebuilding Together
Summary of the key business investments:
- $4 billion business support package, including an extension of the Wage Subsidy Scheme
- $3 billion infrastructure investment package, and a sizable public housing programme to create jobs
- $1.6 billion trades and apprenticeships training package
- $1 billion environmental jobs package
- $3.3 billion new funding to strengthen core services including health and education
There are also specific measures announced including additional support for exporters, tourism, agriculture, Māori economy, as well as additional funding to provide retraining opportunities to those that need it.
Wage subsidy scheme – targeted extension
The wage subsidy has been extended, which will provide a further cash injection for those businesses feeling the impacts of Covid-19 the most. The extended scheme will apply to businesses that have suffered, or expect to suffer, revenue loss of 50% or more over a 30-day period before the date of application for the extended scheme versus the nearest comparable period last year. The scheme will be available from 10 June 2020 until 1 September 2020.
The payment amount continues to be the same ($585.80 per week for employees working 20 hours or more per week and $350 per week for those working less than 20 hours per week) and will be for a period of 8 weeks. Together with the original wage subsidy, eligible businesses will be able to receive support of up to $11,716 per full time employee.
Other support for small businesses
Small and medium enterprises receive further targeted support as part of the Business Support package, a key focus on helping them move to a more digital economy, including:
- $10 million of grants and incentives to develop e-commerce capabilities and to train digital advisors
- $12.5 million for the existing trans-Tasman e-invoicing regime (which helps automates invoicing processes)
- $2.3 million is earmarked for recovery/cash flow advice
- $15 million for other support measures like Business Connect and Better for Business programme.
We will provide more detail of the packages and how to access them as they become available.