Government delivers 2020 Budget 'Rebuilding Together'
In the lead up to the Budget, the Prime Minister commented ‘ New Zealand is about to enter a very tough winter’.
This year’s budget is all about jobs and the government is expected to borrow heavily to deliver it. The forecast surplus of $1.3b had turned into a deficit of $2.7b.
What’s in the budget?
Wage subsidy extended but targeted - $3.2 billion dollars to support a targeted extension of the Wage Subsidy scheme. From June 1 businesses that suffered a 50% drop in revenue over a 30 day period will be able to apply for a further eight week period. (The initial 12 week scheme was available for businesses that could show a 30% revenue reduction).
Research and Development - $150 million short-term temporary loan scheme to incentivise businesses to continue R&D programmes. The loans will provide one-off finance and will be administered by Callaghan Innovation.
Trade - $216 million boost to New Zealand Trade and Enterprise to expand the scope and intensity of support provided to exporting firms.
Ecommerce support for small businesses - $10 million in funding to support small businesses to improve their e-commerce service offerings, and incentives/grants to encourage ecommerce adoption.
Infrastructure and housing - $3 billion more for infrastructure, including building 8000 state and social houses over the next 4 to 5 years.
Training - $1.6 billion in a Trades and Apprentices Package including financial support for businesses to retain their apprentices, free apprenticeships and training in targeted critical industries. There is a specific $50 million fund for Maori Apprentices and Trades Training.
Environment jobs - 1.1 billion to create 11,000 green jobs including regional environmental projects, biosecurity and pest control roles, and DOC's "job for nature" fund.
$400 million Tourism Recovery Fund – including a transition programme to support businesses to plan for the next steps, a fund to ensure key tourism assets survive and a domestic tourism campaign.
For full details you can access Finance Minister Grant Robertson’s Speech here.