GST Cash Refund
To reduce the damage and save jobs, National would offer a cash payment to small businesses most affected by COVID-19.
Businesses would be eligible if they can demonstrate that they have experienced a revenue drop of more than 50% across two successive months because of the lockdown rules.
If they can demonstrate that, then they would be able to claim back the GST they paid during the 6 months to 1 January 2020, up to a maximum of $100,000.
If the business paid more than $100,000 in GST over that period, then they would be able to claim an additional $250,000 as a repayable loan over 5 years, charged at the ten-year Treasury bond rate (currently about 0.7%).
The threshold to qualify for the scheme is tighter than the wage subsidy scheme, in both the size of the revenue decline (50% as opposed to 30%) and for twice as long (two months as opposed to one month).
You can read our policy Factsheet and Q&A here
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