In this session, we’ll take a ‘plain English’ look at the latest changes to the tax system, and how SMEs can access the support they need to keep trading.
As Parliament passed the biggest single tax support package in modern New Zealand history Rotorua business leaders say there is still a long way to go.
Businesses small and large continue to be hit by Covid-19 and the reforms – passed under urgency in the House on Thursday– provide businesses with more than $3 billion in tax relief.
The package takes the total amount Government has spent, and is planning to spend, to more than $23b but, Hospitality New Zealand Rotorua branch president and owner of Hennessy's Irish Bar believes more could be done.
"It certainly is an instant cashflow and everything that comes out is going to help every business, but this is just going to be a bit slower and long-term and clumsy to get into businesses' banks.
Hennessy worried if the Government did not keep on top of it, the country's unemployment rates would "go through the roof".
The only disappointment from the Government, he said, was hearing he had to wait-and-see.
"I think that just gives people the urgency to get out of bed each day and keep going because the scary side of this is a lot of people in our industry [are] really suffering under immense pressure. Waiting and seeing doesn't help."
Hospitality NZ Rotorua branch manager Reg Hennessy welcomes the package but says there is more to be done. Photo / File
The Government's "recovery Budget" just over two weeks away and Minister of Revenue Stuart Nash says there is more support to come.
Finance Minister Grant Robertson has previously stated that the Budget will contain "significant" new measures to help businesses recover from Covid-19.
But Prime Minister Jacinda Ardern would not go into detail about her Government's Budget plans when asked on Thursday.
Rotorua Chamber of Commerce chief executive Bryce Heard said the package was very sensible. Photo / File
Rotorua Chamber of Commerce chief executive Bryce Heard believed the tax package was a "very" rational and sensible decision from the Government.
"All these people have paid that tax in an expectation they were going to make a profit but now they're not going to due to Covid and rather than waiting for the end of the tax year they can get it back straight away.
"The ones that were very profitable are now going into big losses - this could make the difference for many of them because they have no cashflow at the moment and getting back that money they have already given the government in error, is going to help tie them over this period of low income."
Steiners Interiors by Reputation owner Mike Steiner says the package is an opportunity to grasp at straws. Photo / File
Steiners Interiors by Reputation owner Mike Steiner said any handout from the Government was an opportunity to "grasp at straws".
"I think any assistance that can be sought by the Government is going to ease the pain but it is not going to cure it.
