As you may all be aware, the continuing spread of COVID-19 which has been classified as a pandemic has seen the government taking action and making various announcements this week.

The Finance Minister announced on 17 March 2020 a $12.1 billion support for New Zealanders and businesses which includes a business package containing proposed tax measures to support businesses being affected by this outbreak.  

Proposed Tax Changes:

The proposed tax-related measures include:

• Reintroduction of depreciation on buildings for commercial and industrial buildings to encourage investment.
• Increasing the provisional tax threshold, from $2,500 to $5,000 for the 2020/2021 financial year only, to relieve small business owners.
• Cancellation of use of money interest (UOMI) on underpayment of tax for taxpayers who are unable to pay the tax on time due to the outbreak.
• Sharing of information between Inland Revenue and government departments to help these agencies to assist with the outbreak.
• Allowing deductions for low-value assets by increasing the threshold, for low-value asset purchases, from $500 to $5,000 for the 2020/2021 financial year. Also, having a threshold of $1,000 going forward from 2021/2022 financial year.

The proposed tax changes will be included in the Bill to be introduced. For further details on the proposals, please refer to the link below:

https://www.beehive.govt.nz/release/121-billion-support-new-zealanders-and-business

Wage Subsidy Scheme

The announcement also includes support for workers and businesses who have to be on leave or self-isolate to prevent the spread of the COVID-19. This will be part of the wage subsidy scheme available for all employers that are significantly affected by COVID-19. 

The payments will be $585.80 per week for full-time workers (20 hours or more) and $350 per week for part-time (less than 20 hours) workers. These payments will cover a period of 12 weeks and a maximum amount any one employer can receive is $150K.

The wage subsidies will be especially beneficial for businesses in the Forestry and Tourism industry who have been impacted the most due to the outbreak. 

There are certain eligibility criteria for the wage subsidy. Businesses will be required to take active steps to mitigate the impact of COVID-19 and have a signed declaration form to that effect. 

If the COVID-19 outbreak has had an impact on your business and you are facing financial difficulties and require our assistance or advice, please contact Giles now on 0800 758 766.

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Running a business and stress go hand in hand … and letting business stress get to you can be detrimental to your business and even worse – your health.  Recent medical studies show high levels of stress can reduce life expectancy by up to ten years.

So it’s important you know when you are stressed and what you can do to reduce it.

Signs of stress include feeling anxious, run down or irritable, losing weight and sleeping poorly. Often all at the same time which can result in tough times.

Business stress can cause poor or rushed decision making and make a business owner feel as if they aren’t in control. However, accepting that stress is a natural part of business and putting in place strategies to mitigate it will help you, the business owner, stress less and make more.

Here are 7 easy ways to reduce business stress and get on with running your business

1. Eat breakfast

An oldie but as true now as it ever was. A healthy breakfast sets you up for the day, giving your body the energy it needs to function after sleeping. Try a couple of poached eggs which provides the nutrition and protein to get you through to lunchtime without needing a fast fix of sugar to keep you going.

And for even more benefits, before eating your eggs have a glass of water with lemon juice mixed in. This kick starts the liver and helps reduce acid reflux and increase hydrochloric acid which we need to break down food into nutrients.

2. Breathe deep

Most of us do shallow breathing, that is using the upper part of the chest around the rib cage to breathe, taking shorter breaths. However, the better way to breathe is through the diaphragm.

To do this, draw your breath deeply into your body using the abdominals. Hold and then slowly release. At first this may seem unnatural but practice and it will become a normal way to breathe. Diaphragmic breathing will ease stress and anxiety and promote relaxation within the body and also helps strengthen the abdominals and improve circulation.

3. Take up yoga or pilates

So many of us spend our days hunched over computer screens creating postural issues that can cause long term pain and discomfort. Yoga or similar activities will stretch out those tense muscles and can also be beneficial in calming the mind.

4. Get a good night’s sleep

Sleep plays a critical role in thinking and learning. Lack of sleep hurts these cognitive processes in many ways. It impairs attention, alertness, concentration, reasoning, and problem solving, all of which will impact on your ability to manage your business.

However, it’s important not to rely on sleeping pills as these can easily become habit forming. Instead try any or all of the following; use natural sleep remedies such as melatonin, magnesium or a formulation like Sleep Drops, don’t use your phone an hour prior to bed – this will keep you in a REM cycle (or wide awake) for longer, don’t eat after 8pm. Plenty more tips can be found online.

5. Speak out

Business owners are often isolated as they are unable to confide in staff, particularly around business issues or challenges. This can narrow the thought process and lead to poor decision making.

Instead find someone who you can discuss things with to get a third party perspective. Problems might seem more manageable with some fresh thinking. Consider a business mentor or joining a support group such as a business owners association.

6. Be happy

Running a business will always have highs and lows. Accept that not everything will work as you would want and aim to have a positive outlook even when decisions are made that are not in your favour.

Realise the great thing about business is the potential for opportunities to present themselves at any moment.  A simple psychological trick to feel more positive is to look upwards – this will trigger a positive reaction. Another good way is to write a list of positive things each day to reinforce positive mind set.

Everything—good and bad—is a learning experience so, at the very least, you can learn from bad experiences. However, there’s usually even more to it than that. If you really take the time to look, you will usually find something good, something genuinely positive, about every person or situation.

7. Know your numbers

Not being in control is a key driver of stress and in a business sense this often means not being across your financials and “flying blind” in regard to your business position. This can lead to business critical issues such as cashflow shortage. Make sure you have a system for tracking your results that you understand and regularly review your results to ensure you are on top of business performance.

If you would like to learn how a trusted business adviser can put in place processes to help you stress less and make more, read about our business growth services or call GECA now on 0800 758 766.

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Flexible working arrangements

Up till now flexible working arrangements have only been available to caregivers who have been employed at their place of work for six months or more. From March, all employees will have the right to request flexible working arrangements from their first day on the job. There’s no longer a limit on the number of requests an employee can make in a year. When employers receive requests for flexible work arrangements, they must respond within one month, rather than three as before. The response must be in writing and, if a refusal, it must explain why.

Rest and meal breaks

Previously, provisions for rest and meal breaks were quite strict. They now seek to balance the importance of rest and breaks for employees with what is practical for the business. Essentially, employees are entitled to breaks and, if it’s not possible for the employer to ensure breaks for employees, the employer must offer reasonable compensation. Employees and employers can’t contract out of the right to rest and meal breaks though under some circumstances an employer might be exempt from giving breaks or may restrict breaks when the restrictions are reasonable. Key to the new provisions is that employers and employees agree on whatever arrangements are put in place and that arrangements are reasonable. If you are considering varying the arrangements around rest and meal breaks for your employees, touch base with your employment advisor to discuss your approach. As with other employment matters it is important to follow fair process and document any agreements made with employees so that, if required, you can show you have acted fairly and reasonably.

Continuity of employment

The changes to continuity of employment relate specifically to employees in situations where an employer is restructuring or selling a cleaning or catering business and employees are transferring to the new employer. A 2012 review found businesses have difficulty implementing the provisions in practical terms. The changes include set timeframes for employees to elect to move to a new employer; the outgoing employer’s obligation to provide the new employer with detailed information on employees and their entitlements; a way for the outgoing and incoming employers to share responsibility for employee entitlements if they can’t agree on it; protection for employers from unjustified increases in employment costs; and provision for SMEs to be exempt.

Good faith provisions and confidential information

Where the employer proposes to take a decision which will or is likely to affect that employee’s continued employment adversely, changes to the good faith provisions set out what confidential information an employer has to give an employee. The employer must give the employee confidential information where it relates to them but does not have to provide confidential information on anyone else if doing so would involve an unwarranted disclosure of their affairs. Nor are employers required to give confidential information that legally must stay confidential, or where there is a good reason to keep the information confidential (for example, to protect the business’ commercial position). Where allegations are made against an employee, the employee should still know the identity of their accuser and the nature of allegations made against them unless there is good reason to keep this information confidential.

Collective bargaining

The new collective bargaining framework includes provision that collective bargaining does not have to be concluded, though employers will not be able to end bargaining or refuse to enter into a collective agreement just because they object in principle to collective bargaining or collective agreements. A party to collective bargaining can apply to the Employment Relations Authority for a determination as to whether bargaining has concluded.

Employers will be able to opt out of multi-employer bargaining from the start. New employees who are non-union members are no longer covered by terms and conditions of a collective agreement for the first 30 days of their employment. Employers may respond to partial strikes by imposing proportionate pay reductions and unions must provide advanced written notice of any proposed strikes and lockouts.

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