2023 Budget: Trustee tax rate will increase to 39%
Finance Minister Grant Robertson has released his sixth budget. The government had indicated there would...
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Note: this article was updated on 3 March 2022
The government is extending assistance to businesses and organisations that have been heavily affected by New Zealand’s heightened COVID-19 protection measures in recent months. This includes:
Your business may be able to claim these payments if your revenue has been affected by the Omicron response. Here are the facts:
This payment is governed by the same legislation as the previous resurgence support payment and therefore has the same income tax and GST treatment.
Contact your local Baker Tilly Staples Rodway advisor if you need assistance with calculating entitlement to assistance, and assembling support to avoid any issues further down the road.
As you’ll likely know, the government’s Small Business Cashflow Scheme provides loans to support the cash flow needs of small businesses (including sole traders and the self-employed) that have been affected by COVID-19.
This assistance has now been extended:
Inland Revenue continues to offer flexibility regarding tax payment dates where an otherwise viable business is impacted by the pandemic.
It can help with GST and provisional tax due if your business is struggling due to the impacts of the COVID-19 response. Log on to myIR to see:
In addition, Inland Revenue has the ability to write off penalties and interest charged for late returns and payments if the only reason for the lateness is pandemic related. This can include cash flow impacts resulting from government restrictions.
Other tax relief possibilities include instalment payments for businesses struggling to pay outstanding tax, and certificates of exemption for contractors involved in work where schedular payments are to be deducted.
Please contact your Baker Tilly Staples Rodway advisor if you want more details about what assistance is available.
While we are pleased that the government has recognised the significant effect of stop-start COVID-19 response measures on the ability of many businesses to operate, we understand it’s mere window-dressing for some of you.
The laser-like focus on first-payment eligibility relying on a revenue drop between different periods will make determining and proving eligibility difficult for some, including those who have been struggling well before Phase 2 of the Traffic Light system was introduced.
DISCLAIMER: Our team is dedicated to helping you continue with business as usual, as much as you can. Information on government help is changing constantly and within hours of articles being added, the specifics may be out of date or only partially accurate. While we endeavour to keep this website accurate and current, our top priority is providing our clients with dedicated and relevant personal advice. If you need specific and up-to-date information, please seek help from your usual advisor directly.
No liability is assumed by Baker Tilly Staples Rodway for any losses suffered by any person relying directly or indirectly upon any article within this website. It is recommended that you consult your advisor before acting on this information.
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