Paid Parental Leave Changes from 1 July 2020

Parents with children due on or after 1 July 2020 will now receive 26 weeks paid parental leave (previously 22 weeks), and the maximum weekly rate for eligible parents will increase from $585.80 to $606.40 gross. The minimum payment rate for self-employed parents increases from $177.00 to $189.00 gross per week, which is equivalent to 10 hours at the current adult minimum wage.

Keeping in touch days is also increasing from 52 to 64 hours. This means parents can do a limited amount of work while on parental leave. (for example attending an important company meeting).

It’s the Government that pays parental leave, not the employer.

Government Announcements This Week:

The Government’s $3 Billion Infrastructure Spending Plan Has Now Been Revealed
The $3 Billion Infrastructure fund, announced in this years Budget will be spread across 14 regions, with the biggest investment going to Auckland at $500 Million, followed by Canterbury at $300 Million and Otago at $260 Million.
More than 150 projects have already been approved, from 1924 submissions. You can read more about this here.

Petrol Tax & Road User Charges Are Increasing from 1 July 2020
The Government has announced a petrol tax increase, which will see petrol prices rise by 3.5 cents per litre. This equates to an extra $35 to $40 per vehicle, per year, based on an average of 11,500 km.
The cost of road user charges for a light vehicle (eg Car, Van or Ute) is also increasing from $72 to $76 per 1000km.

If your business has a fleet of 5 diesel vehicles, you are looking at an increase of approximately $405 per year ($81 per vehicle) in vehicle expenses, from the above changes. (based on the average of 11,500 km’s per year).

Building Levy Rates Decreasing From 1 July 2020
From 1 July 2020, the building levy rates are decreasing from $2.01 to $1.75 (including GST) per $1000 of consented building work above a threshold of $20,444 (including GST).

 

We will be running a webinar early next month on recovery and growth, while looking after yourself and the team, so keep a look out for the invitation that will be sent out early next week. If your not signed up to our newsletter list, you can do so by clicking here.

We also wanted to include this inspirational video of 3 different businesses who’ve shared their stories of success, hope and opportunity throughout the lockdown period, and how they have innovated ways to move forward.

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