NZ Government COVID-19 Response

The New Zealand Government announced a Business Continuity Package to assist businesses struggling due to the impact of the COVID-19 outbreak.

There are five proposals related to tax:-

• Giving Inland Revenue the discretion to remit use-of-money interest (UOMI) for customers significantly adversely affected by COVID-19.
• Increasing the provisional tax threshold from $2,500 to $5,000 from 2020/2021.
• Increasing the small asset depreciation threshold from $500 to $1,000 – and to $5,000 for the 2020/21 tax year.
• Allowing depreciation on commercial and industrial buildings from 2020/2021.
• Removing the hours test from the In-Work Tax Credit (IWTC) from 1 July 2020.