You may be aware of Government funding to help Auckland businesses stabilise and improve as we move through the traffic light system. In addition to the Wage Subsidy and Resurgence Support Payments, the Government has announced Business Advice support called ‘Activate Auckland’.

Funding is being offered to Auckland businesses to allow them to access expert advice, strategy and planning to enable businesses to address challenges like changing target markets and developing fresh marketing strategies, creating a digital media plan, financial planning and cashflow management, or overall business management, continuity, and strategy. The advice should lead to a plan to overcome challenges and/or identify opportunities and map out the scope of the work required to achieve the plan.

Auckland businesses can apply for up to $3,000 plus GST through the Business Advice support scheme. If granted, the Auckland business then contacts a chosen supplier on the list of approved suppliers who then provide the Auckland business with the advice, plan, management etc. The Government funds then get paid to the chosen approved supplier once the work has been done.

On the above basis, it is likely that no income tax issues arise for the Auckland business who gets approval for such funding, given that the funds are arguably never derived by the said business but are paid directly to the approved supplier.