Leader of the Opposition Simon Bridges has today announced the first part of ³Ô¹ÏÍøÕ¾’s plan for getting New Zealand working again.
“New Zealand has flattened the curve. Our first priority now must be to lift the restrictions that are flattening the economy.
“We need to get cash flowing to the thousands of small businesses that were forced to close in the national interest, and left shouldering a disproportionate amount of the economic burden.
“To reduce the damage and to save jobs, ³Ô¹ÏÍøÕ¾ would offer a GST cash refund of up to $100,000 – based off the GST they paid in the 6 months to 1 January 2020 – to the small businesses most affected. They would need to demonstrate a revenue drop of more than 50 per cent across two successive months due to the lockdown rules.
“We estimate this could benefit up to 160,000 businesses and save countless jobs.
“If the business paid more than $100,000 in GST over that period, then they would be able to claim up to an additional $250,000 as a repayable loan over 5 years.
“³Ô¹ÏÍøÕ¾ understands the key to growing the economy is to encourage and incentivise business investment.
“That’s why we would temporarily lift the threshold to expense new capital investment for firms. The Government lifted the threshold from $500 to $5000 as part of its Covid response. We’d go much further and lift it to $150,000 for two years.
For example, if a company spends $145,000 on a new machine to improve its productivity, rather than depreciating that asset over many years, it will be able to expense the full $145,000 in this tax year.
“What we do in the next few months is critical to help businesses survive and save jobs.
“The Government took the right steps to contain the virus but already it’s stalling on what to do next.
“³Ô¹ÏÍøÕ¾ will work alongside New Zealanders to achieve jobs, sustainable growth and boundless opportunities for New Zealanders and their families.
“Kiwis have done a great job self-isolating and social distancing to save lives. But with 1000 people a day joining the dole queue, we now need to turn our attention to saving jobs.
“³Ô¹ÏÍøÕ¾ will get New Zealand working again.”
