Covirus 19 coronavirus: MPs unanimously endorse the largest fiscal support package in New Zealand history

Parliament approved the largest single tax support package in New Zealand’s modern history as small and large companies continue to be hit by Covid-19.

The reforms, passed urgently in the House yesterday, provide companies with more than $ 3 billion in tax relief.

The package takes the total amount the government has and plans to spend more than $ 23b.

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And, with the government’s “Recovery Budget” just over two weeks away, Revenue Minister Stuart Nash says there is more support to come.

Finance Minister Grant Robertson has previously stated that the Budget will contain new “significant” measures for companies to help them recover from Covid-19.

But right now, it’s a wait-and-see game: Prime Minister Jacinda Ardern wouldn’t go into detail about her government’s budget plans when asked yesterday.

As the Government continues its economic fight against Covid-19, its health response appears to be on a solid foundation.

Yesterday there were only three new cases of Covid-19: the 13th day in a row that the number of new cases has been in the single digits.

There were no more Covid-19-related deaths yesterday, and CEO of Health Ashley Bloomfield revealed that 83 percent of all confirmed cases have recovered.

Speaking to the media yesterday, Ardern was optimistic about another day of new, low cases, but continued to advise people to act as if they had Covid-19.

“We all have a responsibility to make this new phase of this Covid-19 response work.”

For 400,000 New Zealanders, that means going back to work.

But many companies will remain closed until at least the end of level 3.

Ardern said the tax changes approved yesterday will help struggling businesses.

Speaking in the House yesterday afternoon, Nash called the government’s response to Covid-19 “the most significant peacetime economic plan in New Zealand’s modern history.”

The measures include a $ 3b tax loss transfer scheme that will allow large numbers of businesses to access their previous tax payments as cash refunds.

Basically, according to Nash, this means that a forecast loss in the current financial year can be offset by the tax paid on a profit from the previous year.

The general bill also has measures to support business tenants and homeowners and $ 25 million to support other companies over the next year.

Nash said the tax plan, and its swift approval by Parliament, means that cash could start flowing to companies through the tax system starting next week.

The tax bill had unanimous support in the House.

“Many small and medium-sized enterprises (SMEs) are feeling the pain now. We are urgently moving to get cash in their hands as quickly as possible,” Nash said.

The changes in the tax package add to the government’s more than $ 10 billion wage subsidy scheme.

Ardern said yesterday that much of that money would help small and medium-sized businesses across the country.

She said so far, more than $ 1.25b has been paid to some 188,000 unique merchants through the scheme.

Another $ 4.27b went to 160,000 small businesses that employ 1-19 employees, and nearly 8,900 medium-sized businesses, with 20-99 employees, received $ 1.3b.

He noted that all companies receiving the subsidy have had their revenues cut by at least 30 percent due to Covid-19 and the blockade.

And it had a message for New Zealanders, now the country is at level 3 and can buy takeout: people should support local businesses.

People have flocked to fast food outlets after more than a month of home cooking.

A series of photos of people queuing outside fast food outlets appeared on social media shortly after the country entered Level 3: Ardern’s warning on Wednesday was, “Keep your distance.”

Yesterday, he directed his comments towards the owners of food establishments and those who work in the kitchen.

She said the government expects high standards and is taking the problems “really seriously”, adding that the government will also enforce social distancing.

• Covid19.govt.nz – The official government Covid-19 advisory website