Government Presents 2020 Budget

This year’s budget is all about jobs and the government is expected to borrow heavily to deliver it. $50 billion is allocated to a COVID-19 recovery plan in a bid to getting the New Zealand economy moving again.

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 10 June businesses that have had, or expect to have, a revenue loss of least 50% over the 30 day period before they apply (compared to the closest period last year) 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). More information on this extension will be available before 10 June. We understand that high growth and new firms will also be eligible as they are under the current wage subsidy scheme.

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.

Unallocated Budget - There is a further $20 billion dollars of unallocated funding in the budget. 

For full details you can access Finance Minister Grant Robertson’s Speech here.