COVID-19 is an unprecedented situation that continues to change rapidly. We want to make sure commercial tenants receive the support they need to survive.
The wellbeing and safety of tenants and the properties we manage for you is of the utmost importance to us here at Provincia. We will do what Kiwis do best: stand by each other in the face of a challenge.
This is an unprecedented situation that continues to change very rapidly. We recognise it raises a number of questions and concerns for tenants and want to make sure you receive the support you need to survive.
These are extraordinary times and policymakers in New Zealand and abroad have pulled out the stops to try and lessen the economic damage caused by COVID-19. The NZ Government has stepped up its response to the outbreak, announced a substantial $12.1 billion package on 17 March, and on 23 March signalled it is prepared to more significantly leverage off the crown balance sheet to support the economy over the coming years.
The Reserve Bank of New Zealand (RBNZ) has also come to the rescue. On 17 March the OCR was cut from 1.0% to an operational and record low of 0.25% with the pledge it will be held at this level until early 2021.
Central bank policy rates overseas have been aggressively cut and a raft of measures by the RBNZ and other central banks have been proposed and put in place to improve monetary policy implementation and keep the financial system operating.
Is your income down 30% or more?
If you have experienced a 30% loss of income, attributable to COVID-19, in March 2020 compared to March 2019, we strongly encourage you to review the following and apply to the Government for support sooner rather than later.
If you are struggling, this will help you continue to honour your rent obligations.
The New Zealand Government has released a package to help cushion the effect of COVID-19 on businesses and support the economy. The package includes a wage subsidy scheme, leave and self-isolation support and business cash flow and tax measures. Applications can be made on the website for the Ministry of Social Development.
The Government’s $16 billion package to support New Zealanders and their jobs from the global impact of the coronavirus pandemic includes…
- $5.1 billion in wage subsidies for affected businesses in all sectors and regions.
- $126 million in COVID-19 leave and self-isolation support.
- $2.8 billion income support package for our most vulnerable, including a permanent $25 per week benefit increase and a doubling of the Winter Energy Payment for 2020.
- $100 million redeployment package.
- $2.8 billion in business tax changes to free up cashflow, including immediate deductions for low value assets, a provisional tax threshold lift, and writing off interest on the late payment of tax.
Visit the NZ Treasury’s website here for the announcement: COVID-19 Economic Package updated
For full details of the 23 March announcement, visit the Beehive’s web page here: Govt takes significant economic decisions as NZ readies for Alert Level 4 in COVID-19 fight
Of particular interest to you as a commercial tenant will be the following financial support for businesses announced by the Government…
- Leave Payment Scheme. The COVID-19 Leave Payment Scheme is financial support for people who should self-isolate, but might be deterred because of financial reasons.
- Wage Subsidy Scheme. The COVID-19 Wage Subsidy Scheme has been developed to help businesses and affected workers in the short-term, as they adjust to the initial impact of COVID-19. The subsidy is $585.80 per week for a full time employee (20+ hours) or $350.00 per week for a part time employee (<20 hours).
- COVID-19 Economic Package. News: COVID-19 Economic Package announced – The Treasury has details of the Government’s $12.1 billion package to support New Zealanders, their jobs and businesses from the impact of COVID-19.
- Business Tax Changes. Business cashflow and tax measures factsheet has details of $2.8 billion in business tax changes to free up cash flow, including a provisional tax threshold lift, immediate deductions for low value assets up to $5,000 in 2020-21 income year (previously $500), and writing off interest on the late payment of tax.
More COVID-19 Government information
Find out more about the wage subsidy scheme, including how to apply, and other support for businesses at:
- COVID-19 employer support – Work and Income
- Privacy information for employees – Ministry of Social Development [PDF 475KB]
- COVID-19 information for businesses – business.govt.nz
- COVID-19 website – New Zealand Government
This content is provided for general information only and should not be relied upon or used as a basis for making any investment or financial decision. To the extent that any information or recommendations in this content constitute financial advice, they do not take into account any person’s particular financial situation or goals. As individual circumstances differ, we strongly recommend you seek independent legal and/or financial advice prior to acting in relation to any of the matters discussed herein. Neither Provincia Property Fund Ltd nor Provincia Property Management Ltd nor Provincia Property Fund Management Ltd nor any person involved in this content accepts any liability for any loss or damage whatsoever may directly or indirectly result from any advice, opinion, information, representation or omission, whether negligent or otherwise, contained in this content.