Tuesday, 17 March 2020 14:31

Wage subsidy focus of Government’s $12.1b coronavirus scheme

Written by  Staff Reporters
Finance Minister Grant Robertson presented the scheme around 2pm today. Finance Minister Grant Robertson presented the scheme around 2pm today.

The Government has announced a massive $12.1 billion scheme to protect businesses and workers amid the Covid-19 outbreak.

Under the scheme, businesses hit worst by coronavirus may be given a wage subsidy of up to $585.80 a week for each full-time worker and up to $350 per week for each part-time worker.

Making up almost half of the scheme, the $5.1 billion wage subsidy takes a central focus in the Government’s coronavirus response.

Businesses wanting to take part in the wage subsidy will have to prove they are losing a large amount of income due to the pandemic.

The wage subsidy, which kicks in today, will enable businesses to receive up to $150,000 over the next 12 weeks.

$126 million has also been allocated for Covid-19 sick leave and self-isolation. 

The funding will enable employees to be paid for the entire time they are sick with Covid-19.

Businesses will also benefit from a $2.8 billion package of tax changes. 

A higher provisional tax threshold will kick in, interest will be waived on some late tax payments, depreciation deductions will be allowed for commercial and industrial buildings, and businesses will be able to take more deductions for low value assets.

A $2.8 billion package will also go towards beneficiaries and superannuitants. 

Focal to the package, is an increase in weekly benefit payments. 

Beneficiaries will get an extra $25 in their pocket each week and the Winter Energy Payment will be doubled for both beneficiaries and superannuitants to $900 for singles and $1400 for couples.

The health and aviation sectors are also getting a boost, with $500 million and $600 million respectively. 

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