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12 August 2020

The wage subsidy extension remains open for applications until midnight on 1st September 2020.  The subsidy extension is for an 8-week period.

The criteria for the wage subsidy extension:

  • You operate a business (being a registered business, sole trader or self-employed person, a registered charity [1], an incorporated society [2], a non-government organisation, or post settlement governance entity) in New Zealand that employs and pays the employees named in your application; and

  • the employees (including you if you are a sole trader or self-employed person) named in your application are legally employed by your business, are employed in New Zealand and have not been given notice of redundancy, at the date of your application; and

  • your business has experienced a minimum 40% decline in revenue [3] over any consecutive 30 day period in the 40 days immediately before the date of your application (but no earlier than 10 May 2020) when compared to the same period last year, or a reasonably equivalent period for a business operating less than a year or a high growth business that has experienced a significant increase in revenue, and that revenue loss is attributable to the COVID-19 outbreak; and

  • before making your application for the subsidy, you have taken active steps to mitigate the impact of COVID-19 on your business activities (including but not limited to engaging with your bank, drawing on your cash reserves as appropriate, making an insurance claim); and

  • you are not currently receiving the COVID-19 Wage Subsidy, COVID-19 Leave Subsidy, COVID-19 Essential Workers Leave Support or COVID-19 Leave Support Scheme and you have not already received the Wage Subsidy Extension in respect of any of the employees named in your application.

If you are considering applying, and if the hit to your business with this latest lockdown in Auckland means you will qualify for the subsidy extension - the declaration is critical – please ensure you are fully aware of the obligations involved.

If you have any questions about the Wage Subsidy, please contact us. 

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