National Proposes GST Cash Refunds to Help Keep Businesses Afloat

May 08, 2020
792 Views

What's On Invers Business News Presented by and

National is pushing for struggling businesses to be offered GST cash refunds of up to $100,000 as part of its alternative plan to salve the economic damage caused by Covid-19.

The proposal stands in contrast to the government’s scheme for small businesses unveiled last week which offers 12-month interest-free loans.
Speaking to business leaders over a video call this afternoon, National leader Simon Bridges said the government’s approach was a “a recipe for more debt, more misery and more pain”.

“If you’re a business already struggling with cash flow and turnover, getting another loan is probably the last thing you need,” Bridges said.

Instead, the opposition would implement a GST cash-back scheme.

If a company could show that its revenue had dropped by more than 50 percent across two successive months, it would be able to claim back the GST paid over the second half of 2019, up to a maximum of $100,000, he said.

Bridges said National’s proposal was more targeted than the government’s, but also more generous as the eligible businesses would not have to pay the money back.

“These businesses have been forced to shut down in the national interest. It is in the national interest to keep them afloat.”

Firms which had paid more than $100,000 in GST over the six-months could also apply for an additional low-interest loan of up to $250,000.

“We estimate this could benefit up to 160,000 businesses and save countless jobs.”

On that basis, National estimated the scheme would cost approximately $8 billion.

National would also go further than the government in allowing firms to deduct capital investment from tax, Bridges said.

As part of its initial rescue package, the government allowed companies to immediately expense any assets up to $5000, up from $500.

“We’d go much further and lift it to $150,000 for two years,” Bridges said.

“If you have a company and spend $145,000 on new machinery, rather than depreciating that asset over many years, you’ll be able to expense the full $145,000 in this tax year.”

Concluding his speech, Bridges acknowledged the government had taken “the right steps to contain the virus”, but was now stalling.

“National has a plan to rebuild our economy,” he said.

“We will get New Zealand working again, and it is our New Zealand heroes, all five million of them, that depend on us doing so.”

Source: rnz.co.nz Republished by arrangement.

H&J Smith The Latest Victim Of Covid-19: 175 Staff Affected
Business, News
6623 views
Business, News
6623 views

H&J Smith The Latest Victim Of Covid-19: 175 Staff Affected

News Desk - May 25, 2020

After 120 years in business, H&J Smith is planning to close or downsize all of its stores other than its…

Stuff Chief Executive Sinead Boucher Buys Company For $1
Business, News
911 views
Business, News
911 views

Stuff Chief Executive Sinead Boucher Buys Company For $1

News Desk - May 25, 2020

Stuff chief executive Sinead Boucher has purchased Stuff from its Australian owners Nine Entertainment for $1. The chief executive was…

‘It’s un-Australian and Heartbreaking’: Beer Dumped Due to Pub Closures
Business, News
1115 views
Business, News
1115 views

‘It’s un-Australian and Heartbreaking’: Beer Dumped Due to Pub Closures

News Desk - May 16, 2020

Millions of litres of beer are being tipped down the drain in Australia as huge quantities of the liquid gold…

Coworking Spaces to Reopen at Level 2
Business, Covid-19
1151 views
Business, Covid-19
1151 views

Coworking Spaces to Reopen at Level 2

News Desk - May 15, 2020

New Zealand coworking industry association, Coworking Aotearoa, is welcoming the return of coworking in Level 2, saying it will help…

Air NZ Turns Dreamliner Into Inter-Island Cargo Carrier
Business, News
1322 views
Business, News
1322 views

Air NZ Turns Dreamliner Into Inter-Island Cargo Carrier

News Desk - May 14, 2020

Air New Zealand has turned its Dreamliner into a cargo carrier. The airline said it would fly the Boeing 787-9…

Mal’s Music Memory – NZ Music Month – Triple Cracker Finale
Entertainment, News
164 views
Entertainment, News
164 views

Mal’s Music Memory – NZ Music Month – Triple Cracker Finale

Malcolm Gayfer - May 26, 2020

Hiya team, here we are just about at the end of May and NZ Music Month is drawing to a…

New School Taking Shape On Old Waikiwi Primary Site
Community, News
2584 views
Community, News
2584 views

New School Taking Shape On Old Waikiwi Primary Site

Aimee Wilson - May 26, 2020

New life is being breathed into the old Waikiwi Primary School site more than 16 years after it closed. Construction…

Sport Southland Announce New Board Chair
News, Sports
870 views
News, Sports
870 views

Sport Southland Announce New Board Chair

Southland Sports News - May 26, 2020

Invercargill business advisor and project manager Bevan Ellis has been appointed to chair an expanded Sport Southland Board. Ellis, who…

No New Covid Cases In NZ, Day 38 No New Cases
Covid-19, News
442 views
Covid-19, News
442 views

No New Covid Cases In NZ, Day 38 No New Cases

News Desk - May 26, 2020

There has now only been three new cases in the past 14 days. Director-General of Health Dr Ashley Bloomfield said…

Will Home Improvements Be Safe Under New Exemptions?
News, Property
576 views
News, Property
576 views

Will Home Improvements Be Safe Under New Exemptions?

Aimee Wilson - May 26, 2020

Get your hammers out and get building - home improvements no longer need a consent as the Minister for Building…