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Government assistance/funding announced for NZ Businesses

More Government assistance and grant funding announced for NZ Businesses

 

Grant Funding for Businesses:

This latest round of Government business support includes grant funding through the Regional Business Partner (RBP) programme. Sound business continuity planning and cashflow forecasting has never been so important. We’ve all had enough surprises so it’s essential that your plans and forecasts pave a way forward for your business.

PKF Carr & Stanton are a registered RBP partner and can help you access “dollar for dollar” funding to assist you address the immediate issues and to plan for the challenges that may lie ahead.

The funding is available to provide support, training and coaching for:

  • Business Continuity Planning Session – supporting business owners to develop a Business Continuity Plan to navigate the next few months.
  • Finance and Cashflow Management – Forecasting, cashflow planning and management will be critical to survival in these current times and to enable timely decisions to be made. Support will be provided for bank financing and funding applications, ways to manage tax commitments, avoid late payment penalties and interest, and maximise available cash.

Funding Access:

Businesses will need to register through the Regional Business Partner Website and meet (virtually) with to RBP advisor. To be eligible you need to meet the following criteria:

  • Have undergone an assessment with a Regional Partner (Growth Advisor)
  • Have fewer than 50 full time equivalent employees
  • Are registered for GST in New Zealand
  • Are operating in a commercial environment and
  • Are a privately-owned business or are a Maori Trust or incorporation under the Te Ture Whenua Maori Act 1993 or similar organisation managing Maori assets under multiple ownership.

Funding is LIMITED and allocated on a first come first serve basis.

To register click here.

More Government assistance and grant funding announced for NZ Businesses

The new measures include:

  • $3.1 billion tax loss carry-back scheme. (estimated cost over the next two years)

In simple terms businesses expecting to make a loss in either the 2019/20 year or the 2020/21 year would be able to estimate the loss and use it to offset profits in the past year.

Effectively carry the loss back one year and potentially refund some or all the tax already paid for the year they were in profit.

  • Changes to the tax loss continuity rules (estimated $60 million annual savings to business)

Currently, if a company has more than a 51% change in ownership it cannot keep its tax losses. Under the proposed changes, provided the “same or similar business” test is met, the business can carry forward losses. If a business needs to raise capital for recovery this may mean a change to the existing shareholder structure and the loss retention will be attractive to investors.

  • $25 million in the next 12 months for further business consultancy support.

Grants to assist with access to a range of professional business planning and cashflow services.

  • Greater flexibility for COVID-19 affected businesses to meet their tax obligations.

Inland Revenue will have discretion to temporarily change dates, timeframes and procedural requirements.

  • Measures to support commercial tenants and landlords.

Guidelines to ensure an orderly process to deal with commercial lease disputes caused by COVID-19.

 

The legislation to enact these changes will not be introduced until April 27 and will be applied retrospectively once the bill is passed.

There is a lot of detail below these summaries so please contact us if you have questions.

 

For further information please get in touch – email info@pkfcs.co.nz or call 06 876-8124

We are open and here to provide any support that you may need to get through this crisis.

Stay safe and well

PKF Carr & Stanton

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