The New Zealand government has unveiled a $12.1 billion support package for the New Zealand economy, with almost half of the cash to be spent on a wage subsidy package for all coronavirus-impacted businesses.
Those full-time workers eligible for the package will receive $585 per week from the Government, paid in a lump sum package of just over $7000 covering a 12-week period.
The Government is also raising benefits by $25 a week, starting April 1, and doubling the Winter Energy Payment.
This is just the first tranche of the Government spending response – the rest will be unveiled during May's "recovery" Budget.
Today's package comes as part of the most significant peace-time economic plan in modern New Zealand history.
Prime Minister Jacinda Ardern says the Government is pulling out all the stops to protect the health of New Zealanders and the health of their economy.
The big-ticket items of the package include $5.1 billion for the wage subsidy package, $2.8b for benefit increases and the bolstered Winter Energy Payment and a further $2.8b for tax changes to free up cash flow.
The package also contains an initial $500 million boost in health spending and an initial $600 million to support the aviation sector.
A Covid-19 sick leave scheme has also been created and will be available for eight weeks at a cost of $126.5 million.
Some 27,000 workers every two weeks are expected to take advantage of this scheme.
Finance Minister Grant Robertson said the package is one of the largest in the world on a per capita basis.
[Source: NZ Herald]
