Despite the recently announced $3.2 billion COVID-19 support package for businesses, the National Party and some business leaders are calling for the government to do more.
National Party economic development spokesperson Todd McClay says that direct financial support should be given to businesses in most need. McClay points out that the Australian government is supplying tax-free payments of up to A$100,000 to struggling businesses. This support – along with a ‘Job Keeper’ scheme similar to New Zealand’s wage subsidies – allows small Australian businesses to continue sustaining themselves and employees.
“There is not a single business that could have been prepared for this or are responsible for it,” McClay said.
Craig Hudson, New Zealand managing director for Xero, believes GST relief for businesses would be more helpful than what is being made available. He says only a handful of businesses will benefit from the current measures.
Hudson says a break on GST payment would provide a boost to all businesses, especially those that don’t qualify for the existing tax measures.
“Every business is still spending, and being able to get out of GST would be a broad-spectrum solution,” Hudson said.
Under the latest government aid package, which was announced in mid-April, businesses will have access to free business consultancy worth $25 million, while being offered relaxed tax deadlines as well as extended timeframes for mortgage sales and leases. These were additional measures added to the existing $20 billion support package for small and medium-sized businesses impacted by the pandemic.