COVID-19 economic response measures

The information below outlines government measures introduced to cushion New Zealanders against the impacts of COVID-19 and help reset and rebuild our economy.

Support for businesses

The Treasury has compiled a new resource for business, which includes information on key COVID-19 support packages as of 15 July 2020 and how to access them.

You can download the guide here on the Treasury website: Government support for businesses recovering from COVID-19 (PDF 257.12 KB)

The Treasury has also created a handy guide to the Business Finance Guarantee scheme, here on this website: Business Finance Guarantee scheme 

Where to find more information about:

How banks are helping customers through COVID-19: Banking response to Covid-19 (nzba.org.nz) 

The latest data on how banks are supporting businesses through the pandemic: Business lending data (nzba.org.nz) 

Wage Subsidy and Essential Workers Leave Support information for employers: COVID-19 support for employers (workandincome.govt.nz)

Business tax changes: COVID-19 (novel coronavirus) - Tax changes to support businesses (ird.govt.nz)

Income support: COVID-19 (novel coronavirus) (workandincome.govt.nz) 

Overview of measures announced

Post-Budget 2020

After Budget 2020, $20.2 billion remained in the CRRF fund. Investments made since then include:

  • extension of the Wage Subsidy Scheme and the COVID Income Relief Payment for those who lost their income as a result of the pandemic
  • extension to the Small Business Cashflow Scheme, and
  • additional funding for personal protective equipment for health providers.

Further support for ongoing health, border and economic response measures has occurred, and investment of $760 million to help councils upgrade their Three-Waters infrastructure.

As at 20 July, $14 billion remained in the COVID Response and Recovery Fund, which is now being set aside in the event that, for example, New Zealand experiences a second wave of the pandemic.

May 2020: Budget 2020 and the COVID Response and Recovery Fund

Budget 2020, delivered by the Minister of Finance on 14 May, complemented the initial response to COVID-19. The core of the Budget focused on meeting cost pressures and supporting public services to fight and rebuild from COVID-19. The $50 billion COVID-19 Response and Recovery Fund (CRRF) established in the Budget supports initiatives from the Budget and further measures announced since.

A summary of the initiatives funded from the CRRF can be found here: Summary of Initiatives in the COVID-19 Response and Recovery Fund (CRRF) Foundational Package

March 2020: Initial Economic Response Package

On 17 March 2020, the Government announced an initial $12.1 billion COVID-19 Economic Response Package. As the situation changed, the package was expanded.

Hon Grant Robertson: $12.1 billion support for New Zealanders and business - 17 March 2020 (beehive.govt.nz)

You can view the COVID-19 Economic Package at a Glance as at 15 April 2020 via the link below.

COVID-19 Economic Package at a Glance: He Waka Eke Noa: We Are All Working Together - April 2020

January 2020: the New Zealand Upgrade Programme

As announced in January 2020, the Government will also invest $12 billion in significant infrastructure projects under the New Zealand Upgrade Programme.

Hon Grant Robertson: Growing and modernising the NZ economy - 29 January 2020 (beehive.govt.nz)