The Government's unprecedented $12.1 billion Covid-19 spending package – "the most significant peace-time economic plan in modern New Zealand history" – has been almost universally welcomed.
It came on the same day as New Zealand reported the most number of new cases of the virus - up four to a total of 12, including a Dunedin school student.
"In unprecedented times, you make unprecedented decisions," Prime Minister Jacinda Ardern said in the House yesterday.
And this is just the beginning. The rest of the package will be unveiled during May's "recovery" Budget.
The scale of the spending has been described as bold, strong and "suitably aggressive" and comes as Finance Minister Grant Robertson admits that a recession in New Zealand "is almost certain".
The package includes:
• $5.1 billion in wage subsidies for Covid-19 affected businesses
•$2.8 billion income support package increased benefits and the doubling of the Winter Energy Payment
•$2.8 billion in business tax changes to free up cashflow
• An initial $600 million aviation support package
• An Initial $500 million boost for health
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• $126 million in Covid-19 leave and self-isolation support
•A $100 million redeployment package
Almost half of the cash will be spent on a wage subsidy package for all Covid-19-impacted businesses.
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.
Part-time workers, people working fewer than 20 hours a week, would receive $350 a week.
Businesses which have suffered, or are projected to suffer, a 30 per cent decline in revenue compared to any months between January and June the year prior will be eligible for the subsidy.
That is as long as they have taken steps to mitigate Covid-19's impact and promise to pay affected employees at a minimum of 80 per cent of their income over the 12 months period.
Employers can already apply for the subsidy and Ardern said money could be with them in as soon as five or six days.
The maximum amount any one employer can receive is $150,000.
The Government is also spending $2.8 billion on raising benefits by $25 a week, starting April 1, as well as doubling the Winter Energy Payment.
That's a total of $8.7 billion for businesses and jobs.
"The Government is pulling out all the stops to protect the health of New Zealanders and the health of our economy," Ardern said.
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