COVID-19 wage subsidy extension

By on 18th May 2020

COVID-19 Wage Subsidy Extension

As outlined in the Budget the Wage subsidy has been extended.

Key points:

  • Wage subsidy extension will be available from 10 June 2020 until 1 September 2020
  • Applications open from 10 June 2020
  • You must have had, or expect to have, a revenue loss of at least 50% for the 30 days before you apply, compared to the closest period last year
  • It will cover 8 weeks per employee from the date you submit your application
  • It will be paid to you as a lump sum at the same weekly rate as the Wage Subsidy
  • You will need to agree to certain obligations, such as to:

Pass the subsidy on to your employees

Retain your employees for the duration of the subsidy

Do your best to pay your employees at least 80% of their normal pay

Take active steps to mitigate the impact of COVID-19 on your business

  • You wont be able to receive more than one COVID-19 payment for the same employee at the same time.  This includes:

Wage Subsidy

Leave Support Scheme, and

Wage Subsidy Extension

What else was in the budget?

Research and Development – $150 million short-term temporary loan scheme to incentivise businesses to continue R&D programmes. The loans will provide one-off finance and will be administered by Callaghan Innovation.

Trade – $216 million boost to New Zealand Trade and Enterprise to expand the scope and intensity of support provided to exporting firms.

Ecommerce support for small businesses – $10 million in funding to support small businesses to improve their e-commerce service offerings, and incentives/grants to encourage ecommerce adoption.

Infrastructure and housing – $3 billion more for infrastructure, including building 8000 state and social houses over the next 4 to 5 years.

Training – $1.6 billion in a Trades and Apprentices Package including financial support for businesses to retain their apprentices, free apprenticeships and training in targeted critical industries. There is a specific $50 million fund for Maori Apprentices and Trades Training.

Environment jobs – 1.1 billion to create 11,000 green jobs including regional environmental projects, biosecurity and pest control roles, and DOC’s “job for nature” fund.

$400 million Tourism Recovery Fund – including a transition programme to support businesses to plan for the next steps, a fund to ensure key tourism assets survive and a domestic tourism campaign.

For full details you can access Finance Minister Grant Robertson’s Speech here.

Call us on 04 4771801 or contact us today