The New Zealand Maori Council has swung in behind small and medium sized businesses having released a suite of policy
recommendations that include immediate taxation changes, introduction of a quickly implementable asset write off scheme,
commercial rental accommodation supplement and payroll relief through an ongoing wage subsidy program – all designed to
ensure small and medium sized business not just survives the period of the lockdown but is also able to thrive. The
Executive Director of the New Zealand Maori Council, Matthew Tukaki, has said while the package does target support for
Maori “the reality is this package applies to all small and medium sized enterprise across Aotearoa”. Tukaki has vast
experience in economic challenges such as these having led the world’s oldest and largest employment companies, Drake
International, through the global financial crisis across multiple countries between 2007-2010 and having represented
business and industry globally while on the Board of the United Nations Global Compact.
"We must push back against the storm facing our small business & we must move from surviving to thriving. We must focus on hope, aspiration & opportunity.” He said and “this means developing policies that are easily implementable and focus on sustaining
cashflow, freeing up working capital, supporting payroll and wage relief as well as a suite of measures to further grow
small business export growth. In many ways we must defeat what otherwise could be a much higher unemployment rate
especially amongst Maori and more importantly in the regions and provinces where once unemployment takes hold it is hard
to reverse.”Instant asset write-off policy for small business
“The first measure is the introduction of a strengthened instant asset write off scheme that small business be able to
instantly write off asset purchases which will also simplify depreciation. The asset purchase ceiling would be $100,000
and target assets that would be purchased to both build and grow the business or purchase at a time when the rules
around depreciation were a lot more flexible. If you were running a coffee shop then this would be items such as coffee
machines, electrical goods and so on. If you were running a trade related business, it could extend to tools and
equipment through to a vehicle. The policy would target businesses with turnover of $100 million and less with the
objective to create stimulus in the economy whereby cashflow and sales are shared across the small business sector. It
also frees up additional working capital. Purchases would each carry a ceiling limit of $50,000 and extend to other
items such as computer equipment and technology.” Tukaki saidTrade services relief and support package
“The second includes trade services relief and support. We know that a great many small businesses in New Zealand
operate as sole traders and SME’s between 1-5 employees and contractors and we also know that many include those working
in the trades sector. We also know that Maori are a significant part of this workforce. While we believe that each of
these small businesses would be able to take advantage of the instant asset write off policy suggestion through the
purchasing of tools and equipment we also know that they will be able to take advantage of the ongoing demand in the
construction and infrastructure sectors. However, their cashflow on restarting their businesses post the lock down will
mean they still have tight cashflow even though there is demand. This also means that they are likely to employ but will
still have to cashflow wages waiting for invoices to be paid. That is why we would like to see two things. First is an
additional wage subsidy program equal to 50% of the payroll for the first four weeks of each employee being returned to
work. This will enable the small business to cashflow 50% of their overall payroll for the first four weeks until
invoice revenue is restored. The second is to allow the small business to purchase tools and equipment on behalf of the
worker and still take advantage of the instant asset write off.” Tukaki saidIntroduction of an interim small business accommodation supplement
“The third is the introduction of an interim small business accommodation supplement. We know that one of the major
costs to running a small business is rent on a commercial premise. We also know that while many small business operators
have not been able to operate the costs have still been adding up. The addition of a small business accommodation
supplement of between 25-35% of the rental cost per week for the first two months of restarting post lock-down would
again provide operators to return to a balanced cashflow state by removing a portion of the weekly expense. This would
however be limited to small business such as the retail, trades and services sectors with turnover of less than $20
million per annum with a ceiling of $750 per week for a period of two months. As part of this policy approach we would
also advocate that small business owners and operators who are operating from a residential premise become eligible for
the accommodation supplement paid out at the percentage of space utilised. This is like the write off provisions of
office space as a deduction but in addition to it.” Tukaki saidOther measures include: (see attached):Introduction of an interim small business accommodation supplementEstablishment of a National Ombudsman for Small Business OfficeAdditional access to research and development concessionsExport support and online technology package
In addition to these measures the New Zealand Maori Councils National Taskforce will convene a special online hui with
related parties, sectors and organisations to discuss what additional support might be needed to get the following
industries back up and running and on a pathway to growth post the lockdown:Maori TourismMaori film and screenMaori digital and technology enterprisesMaori retail (online)