Flood relief announcement
As we head into the budget day tomorrow, and our region continues to grapple with the clean-up from Cyclone Gabrielle, there have been a number of flood relief announcements recently that we would like to bring to your attention.
Tax relief
The Government has announced tax relief for North Island businesses that have been impacted by the cyclone by way of deferral of tax on insurance receipts. Normally these insurance payouts could result in taxable income, but the Government recognises that this tax cost would be unhelpful as businesses are struggling to rebuild. This relief will give businesses some time to purchase replacement assets and will apply to those assets replaced during the next five years.
The cost of the replacement asset would be adjusted for tax purposes to reflect the tax deferral. The adjustment will reduce the future depreciation claim; however, the additional tax liability could be spread over several years instead of being paid upfront.
Similar tax treatment was also provided after the Christchurch and Kaikoura earthquakes; however, one major difference is that with the consideration of managed retreat in flooded areas, there will be no requirement for the replacement buildings to be located in the same region.
📌 To read the full announcement, please click here.
Funding for silt and debris removal in Hawke's Bay and Tairawhiti
On 3 May the Government announced:
• $102 million will be made available to help councils process and dispose of all the debris coming from residential properties, and to deal with sediment on council-land to make it available for public use again.
• $70 million for commercial properties (including farmers and growers) to help clean up their land.
• Funding for debris and sediment removal from whenua Māori.
This funding will help the councils manage the costs of collection, processing, removal, and disposal of sediment and debris.
📌 For more information, please click here.
Cyclone recovery package
On 14 May the Government announced The Budget 2023 Flood and Cyclone recovery package, which includes:
• Initial $100 million flood protection funding.
• More on-farm support for the safety and well-being of people and stock.
• Employment schemes to retrain workers facing volatile jobs market.
• More support for food banks and ongoing clean-up efforts.
📌 For more information, please click here.
Phase Two — Hawke's Bay Disaster Relief Trust
This fund allows cyclone-impacted residents to apply if they have incurred significant personal costs, not covered by any other funds. Evidence such as receipts, quotes, and photographs will need to be provided for assessment prior to approval.
Individuals can apply for $10,000 and community groups and Maraes can also apply for $10,000.
This fund will mainly be used for:
• Dealing with septic tank overflows and filling water tanks.
• Clearing debris from properties including waste, silt, or any other items that need clearing in relation to cyclone status.
• Significant costs incurred on your property are not covered by any other grants or income.
• Replacement of articles that cannot be insured by people, ie; fences, footpaths, etc.
📌 For more information, please click here.