COVID-19 Help & Subsidy Summary for NZ Businesses

To support small and medium-sized businesses through the COVID-19 crisis, the New Zealand Government introduced a range of tax changes, subsidies, and relief measures. Many of these were targeted at improving short-term cashflow, supporting business continuity, and reducing compliance burdens.

Oxygen8 Business Consultant Susan Cooney shares a summary of key changes and how they apply to SME clients across the country.

Key Business Relief Measures

Tax Loss Carry-Back Scheme
Businesses that expect to make a loss in 2020/21 can estimate this loss and use it to offset profits made in the previous year, allowing for a tax refund. This helps inject cash into affected businesses early.
Change to Tax Continuity Rules
The 2020/21 income year includes proposed changes to allow businesses with significant ownership shifts to retain tax loss carry-forwards. This is intended to support restructuring and recovery.
Greater Flexibility Around Provisional Tax
Provisional tax estimates can be adjusted post-7 May if revenue has changed significantly. Extensions to tax filing and payment deadlines are also part of the response package.
Commercial Lease Adjustments
Tenants were given more time to cancel leases if landlords breached obligations, and timeframes for repossession processes were extended from 10–20 working days to 30 for both commercial and mortgage cases.
Free Business Consultancy Support
Oxygen8 can help you access up to $2,000 in free advisory support via the Regional Business Partner Network. This includes business continuity, HR, financial planning, and strategy support.
Remittance of UOMI (Interest on Tax Debt)
UOMI may be waived if your business income dropped by at least 30% due to COVID-19 and you’re unable to meet standard tax obligations. Applications are handled via IRD.
Depreciation on Non-Residential Buildings
From the 2020/21 income year, depreciation on non-residential buildings was reinstated, allowing further tax deductions for capital improvements.
Low-Value Asset Write-Off
From 17 March 2020 to 16 March 2021, businesses could instantly expense assets costing up to $5,000. After this period, the threshold returned to $1,000.
Wage Subsidy
If your business met the wage subsidy criteria, repayment was not required. If not, MSD may request clarification or repayment.
Apply via: COVID19subsidy_overpayment@msd.govt.nz

Client Story: CDM Limited

“Oxygen8 helped us define our values, build our team, and align business goals with life goals. I wouldn’t be without it.”
– Hayden Pirie, CDM Limited

With a background in construction, Hayden Pirie knew how to build projects – but not necessarily how to structure a business. Leading CDM Limited, a commercial construction and project management firm, meant long hours, constant decision-making, and minimal work-life balance.

Partnering with Oxygen8 helped Hayden develop a strong management team, define the company’s vision and values, and create systems that gave him more time, better outcomes, and space to focus on the future.

A newly strengthened management team now shares decision-making responsibilities, giving Hayden more balance and a better quality of life. The business continues to grow, and Hayden even relocated to be closer to family – a personal milestone that was once out of reach.

CDM now operates with clarity, collaboration, and a well-defined future – all built on a strategic foundation developed with Oxygen8.

Meet the consultant: James Kirner

James Kirner is a leading expert in business sales and communication, known for his ability to cut through the noise and identify the critical factors that drive business performance. With a talent for analysing real-world situations and creating positive outcomes, James works alongside business owners to deliver tangible results.

He specialises in helping New Zealand SMEs find clarity and direction in the face of complexity-supporting stronger decision-making and long-term business growth.

Final Thoughts

The rules may continue to evolve, but one thing is clear: getting the right advice early matters. If you’re unsure what you can claim or whether you still qualify, Oxygen8 can help you get clarity – and take action.