A universal basic income for all New Zealanders is being considered by the Finance Minister as he tries to ward off coronavirus' economic peril.

Finance Minister Grant Robertson on Wednesday confirmed the controversial welfare measure, which would see the Government pay all New Zealanders an income to survive, was "on the table".

"We're obviously going to be in a situation where a large number of people are going to be relying on income support from the state for an extended period," Robertson said on RNZ.

Unlike other benefit payments a UBI would not be dependent on any kind of means testing and would require no commitments from those receiving it, meaning people would still be able to work and earn as much money as they like without losing any cash from the scheme.

READ MORE:

* Coronavirus: Full coverage

* Coronavirus isn't alive and that's why it's so hard to kill

* The difference between coronavirus, the flu and a cold

* Work from home starts now

A universal basic income (UBI) has been considered entirely unpalatable for mainstream Kiwi politicians since the heady days of the reforming fourth Labour government, which flirted with something close to it. National is particularly opposed, as it advocates a hyper-targeted "social investment" approach to welfare.

New Zealand already has a reduced form of a UBI — superannuation payments which go to everyone aged over 65-years. Some of the more right-wing advocates for a UBI hope a more universal scheme could completely eliminate the need for the current complex welfare system of benefit payments, hardship grants, and tax credits for working families. Unlike conventional benefits, it would not be "clawed back" as people moved into work, meaning there was still an incentive to get employment.

Other UBI advocates are keen on the way it could keep spending (or "demand") up, particularly as the economy stutters.

The measure would be costly. A recent advocate, economist Gareth Morgan, suggested the government could set such payments at $200 a week. Paying that out to every Kiwi would cost $51.5b a year - which is over half our total government spend right now.

But a UBI wouldn't necessarily have to last all year and the Government could be looking at a very time-limited payment scheme.

Robertson on Wednesday said it was too early to say how much money was being considered for a possible UBI, "we've just got to work our way through our options here".

"We're looking at the medium and long term here where we recognise a large number of New Zealanders are not going to be in work for potentially not in work for periods, or uncertain about the work they're going to have," he said.

"The benefit system is there and obvious we have to look at how that will be tweaked. We have to look at how we can continue to see people attached to their employers, that's been the point of the wage sub scheme."

The Government has already put in place a wage subsidy scheme, in which the government would cover 20 per cent of a worker's wage to keep them employed.

The $150,000 cap on this scheme was lifted on Monday, meaning larger firms will be able to claim it for all their staff if they experience a 30 per cent monthly sales drop.

Business owners who have already been granted the wage subsidy will be automatically topped up. Businesses which had claimed only enough to meet the former cap can reapply.