Here are the latest tax updates which may affect you:
Wage Subsidy Extension
A lot of you will have been adversely affected by the lockdown. I hope you took advantage of the wage subsidy while it was available. The government has now announced an extension to the wage subsidy. The amount they will pay out will be 8 weeks at the same rate as you received the wage subsidy. To be eligible for this, you must be able to prove that your business income for 11 May 2020 – 10 June 2020 was at least 40% less than the previous year (11 May 2019 – 10 June 2019). Applications start on 10 June. If you are unsure whether you are eligible for this, flick me a message and I’ll have a look for you.
Small Business Loan
The government has also announced a small business loan available for businesses affected by the lockdown. If you were eligible for the wage subsidy then you will be eligible for this. It is a government loan up from $10,000 to a maximum of $100,000 depending on how many employees you have. It is repayable at an interest rate of 3% over 5 years. You only have until 12 June 2020 to apply for this so get in quick! Again, let me know if you want me to have a look into your eligibility for you.
New Way of Paying Tax
The IRD have announced a new way of paying tax for those who don’t use internet banking. If you are paying tax by EFTPOS or cash at Westpac then you will need to take a barcode with you. If you are planning on paying this way, please let me know and I will produce the relevant barcode for you when I complete your tax return.