2020 Budget - Highlights
The Government's response to the COVID-19 pandemic plays a big part in the 2020 Budget. This year's budget focuses on injecting funds into the economy to create and sustain employment. As Finance Minister Grant Robertson states "this budget is about jobs". The budget has a focus on the workforce and supporting employment.
Below we have summarised for you the key takeaways from all of the information that has been released.
New support measures for businesses affected by COVID-19 include:
A targeted extension of the wage subsidy scheme. An additional $3.2 billion to extend the wage subsidy. The extension is available for a further 8 week period (ie further to the 12-week period of the existing scheme) for those who have suffered a 50% reduction in turnover in the 30 days prior to application as compared to last year.
Loan scheme for R & D programmes. A $150 million short-term temporary loan scheme to encourage businesses to continue R&D programmes that may be at risk due to COVID-19. The loans will provide one-off finance and will be administered by Callaghan Innovation. Businesses can access loans of up to 50% of the R & D expenditure, up to $100,000.
Further business support by way of a $216 million boost to New Zealand Trade and Enterprise to assist exporting firms, and $10 million allocated to small businesses to improve their online capability.
Other key announcements:
a $1.1 billion package to create 11,000 environment jobs (including regional environmental projects, biosecurity, weed and pest control, and additional DOC jobs)
8,000 additional public and transitional homes to be built, expected to create $5 billion of construction activity
a $1.6 billion trades and apprentices package to provide opportunities for New Zealanders of all ages to receive trades training
a $400 million injection into the Tourism Sector Recovery Plan to support domestic tourism
You can find more detail on the 2020 Budget here.