Find out about Australia and New Zealand’s economic packages to support business for local companies. Like many countries. these South Pacific Island nations have taken measures against COVID-19. Strict social distancing measures in place across the world can impact business activity quite significantly, as many are unable to operate, or are operating at a reduced capacity.
The global economic situation has changed, and businesses may struggle to stay afloat.
Australia and New Zealand are executing campaigns to support local companies in order to prevent them from going bankrupt. Gain insight into this overview: Australia and New Zealand’s economic packages to support business.
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Overview of Support Campaigns in Australian and New Zealand
Australia and New Zealand’s government introduced economic packages to support business in the countries. The following sub-headings will show you some examples of the actions they carried out.
Australia‘s support campaign
Business Australia, a free membership organisation that supports over 40,000 companies in Australia, gives advice and guidance to help Australian business owners navigate through these difficult times. To offer extra support during this challenging time, they have converted a big part of their website to offer resources for free for all businesses in a campaign. The resources available support businesses in preparing their continuity plan and finding creative ways to stay afloat during this time of economic uncertainty.
The Australian government offers various free advice for local businesses that want to prevent from going bankrupt. The following tips are:
- Boosting Cash Flow for employers
- Supporting apprentices and trainees
- Increased and accelerated income support
- Early access to superannuation
- Assistance for affected regions, communities and industries
- Supporting the flow of credit
- Sole trader support
- Tax support.
New Zealand’s economic package
The New Zealand government will spend NZ$12.1 billion to support businesses operating in the country. The country’s economic package will also increase benefits for senior citizens and low-income families, pay people unable to work due to self-isolation measures, and boost medical testing and intensive care capacity.
- NZ$5.1 billion of the total budget is used to support in wage subsidies for affected businesses in all sectors and regions.
- NZ$2.8 billion of the total budget is used in business tax changes to free up cash flow.
The wage subsidy scheme supports employment of most-affected firms with a subsidy of NZ$585 per week per full-time worker for up to 12 weeks. This should help in reducing job losses for employees and retain staff for businesses.
Doing business in New Zealand and Australia
If you are looking to grow your business internationally, Australia’s and New Zealand’s strong economic fundamentals and location in the Asia Pacific provide a wealth of opportunities. Some examples of the advantages of doing business in this region include:
- Highly ranked in ease of doing business index (New Zealand first, Australia fourteenth)
- Low corruption rate
- Human development
- High GDP per capita
- Open to foreign business
- Strong international links
- Highly productive agriculture nations
- Strategic location
- Stable currency and economy
Contact Biz Latin Hub for local support
The COVID-19 pandemic has affected many countries and their economies. Governments are trying to support local businesses to prevent them from going bankrupt during this challenging time. Several measures have been implemented that can significantly affect business.
At Biz Latin Hub, our team of local and expatriate professionals support expanding multinationals to do business in Australia and New Zealand. Through our full suite of market entry and back office solutions, we offer the highest quality legal, accounting, payroll and other secretarial support to get your busniess up and running, and comply with all local corporate regulations.
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The information provided here within should not be construed as formal guidance or advice. Please consult a professional for your specific situation. Information provided is for informative purposes only and may not capture all pertinent laws, standards, and best practices. The regulatory landscape is continually evolving; information mentioned may be outdated and/or could undergo changes. The interpretations presented are not official. Some sections are based on the interpretations or views of relevant authorities, but we cannot ensure that these perspectives will be supported in all professional settings.