New Zealand Announces New Measures to Support Small Companies

Finance Minister Grant Robertson announces new measures to provide relief for small and medium-sized businesses during the Covid-19 pandemic.

• New measures include:
  • Tax loss carry-back scheme, estimated to cost NZ$3.1b over two years
  • Changes to tax loss continuity rules making it easier for firms to raise new capital without losing benefit of existing tax losses
  • Business consultancy support
  • Greater flexibility for affected businesses to meet tax obligations
  • Measures to support commercial tenants and landlords
• “We have approved a tax loss carry-back scheme that will allow a large number of businesses to access their previous tax payments as cash refunds. Essentially this means a forecast loss in the current financial year can be offset against the tax paid on a profit from last year”: Robertson
• “We need our businesses to stay solvent to help with the economic recovery as we emerge from this health crisis”
• New measures also announced to support stability in commercial property transactions, extending the timeframes required before landlords can cancel leases and mortgagees can exercise their rights to sale or repossession
• “Work is also underway on further support for businesses and households as the impacts of Covid-19 become clearer”: Robertson
• NOTE: Measures are in addition to ~NZ$20b in support already announced

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Matthew Brockett in Wellington at mbrockett1@bloomberg.net

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