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The jobs budget
accelerateonline • May 17, 2020
The focus is on sustaining existing jobs, job creation, job training and retraining. To support this, Budget 2020 allocates funds to infrastructure investment, business support, housing development and construction, an environmental jobs package, and a trades and apprentices package.
Sustaining existing businesses
The economic response to COVID-19 from March forms a backdrop to the Budget. Although the Budget doesn’t introduce any new tax measures, it builds on the business support strategies:
- a $3.2b extension to the Wage Subsidy for a further 8-weeks (further to the 12-week period of the existing scheme) for those who, in the 30 days before application, suffered a 50% reduction in turnover compared with 2019
- broader refundability for Research and Development (R&D) tax credits is followed up with a $150m short-term temporary loan scheme for R&D. As incentive to businesses to continue investment for future growth, the loans provide one-off finance
- assistance to exporting firms in a $216m boost to New Zealand Trade and Enterprise
- lockdown spurred businesses to add or grow online operations. $10m is earmarked for small businesses to improve e-commerce capability.
Job creation, training and retraining
In some sectors, it is hoped to generate activity creating new jobs. Other sectors will see a jobs exodus. People will need to retrain, either for restructured businesses or moves to other sectors. Budget 2020 addresses this with:
- $5b for construction activity on 8,000 additional public and transitional homes. Public confidence in the Government’s capability in this area has taken a hit. It’s yet to be seen whether they can meet this goal
- $1b to create 11,000 environment jobs (including regional projects, biosecurity, weed and pest control, and additional DOC jobs)
- a $1.6b trades and apprentices package (including support for businesses to keep their apprentices, free apprenticeships and training in critical industries, increased enrolments in tertiary education and $50m for Maori Apprentices and Trades Training)
- $400m for a Tourism Sector Recovery Plan, recognising this is the first stage for a sector deeply affected by COVID-19 with a lot of uncertainty ahead
- a $3b contingency boost for additional infrastructure, specific projects to be identified via the Infrastructure Reference Group , in partnership with local bodies and the Provincial Growth Fund.
Accelerate - December 2023
Accelerate August 2023
Inland Revenue have recently announced this year’s livestock Herd Scheme Values and we think this is a great opportunity to update you on the latest movements. The Herd Scheme Values are the National Average Market Values, determined by a process involving a review of the livestock market as at 30 April.
The values for Dairy this year have seen a fall in values across all female classes, but increases across all male classes. The fall in R1 heifer values can be attributed to the prohibition of live export by sea commencing from 30 April 2023. For the first time the National Average Market Value for R1 Heifers is less than the National Standard Cost of breeding and rearing an R1 Heifer.
In contrast to Dairy values Beef values have increased on average 9% and are almost at record values for all classes.
Sheep values have all fallen from the high of 2022, slipping back an average of 10.2%. Whilst values have fallen, they are still either the second or third highest that they have ever been depending on which class of sheep you are looking at.
Goat values have increased on average 7.8% with almost all classes of fibre and meat producing goats at record highs. The value of milking goats continues to be well down from historic highs, except for breeding bucks which are at their highest value.
Like the rest of the world, New Zealand has reeled from the aftermath of Covid, rising inflation and interest rates, and the cost-of-living crisis. This year we also have a massive storm damage repair bill.
Any tax cuts, or changes to the tax thresholds were vetoed in Budget 2023 as this was viewed as worsening inflation.
Budget 2023 builds on the $889m already provided in response to this year’s storms. A further $6b is allocated for a National Resilience Plan , for rebuilding after weather events. $71b is committed to new and existing infrastructure projects: not only storm damaged communications, power and roading, but schools, hospitals, public housing, rail and road.
