Business will welcome the lifeline of a new six-week package of transition payments, leniency from IRD and an extension of the cashflow loan scheme.
“Government has listened and recognised the plight of hard-hit businesses to meet their costs and hold onto staff as the pressure builds along with Omicron’s surge,” says Auckland Business Chamber CEO, Michael Barnett noting that the criteria for the support payments has been lifted marginally to 40 per cent downturn in turnover.
“The three $4000 payments plus $400 for each FTE over the six-week period will cover, we estimate, up to 70 per cent of an average SME’s outgoings.”
Mr Barnett said the government rescue package recognised that enterprises had done everything they could, pivoting, restructuring, transforming service and supply models to become more efficient and moving to the digital world and ecommerce.
“Business has kept on keeping on and this package will give fresh hope that they will ride this latest uncertainty and challenges caused by the rules around isolation and testing.”
Read the media release by Hon. Grant Robertson and Hon. David Parker here.