Today the Government announced a COVID-19 Resurgence Wage Subsidy due to the second outbreak of COVID-19 in New Zealand. To be eligible, your business must show a 40% decline in revenue over any consecutive 14 day period between 12 August and 10 September 2020 compared to a similar period last year.
You don’t need to apply right away!
The wage subsidy extension will be available from 1pm on 21 August 2020 until 03 September 2020 and will cover each named employee for two weeks.
How do you apply?
Applications open on 21 August, please visit the link below for more information on the Work & Income NZ website.
The amount paid to employers does not change, the subsidy is set at a flat rate and paid to employers as a lump sum to cover two weeks per named employee:
- $585.80 for people working 20 hours or more per week
- $350.00 for people working less than 20 hours per week
Other things to note
- If you applied for the Government’s Wage Subsidy Extension, your business can only apply for the Resurgence Wage Subsidy after your 8 week wage subsidy extension has ended.
- If you have given employees notice of redundancy, you won’t be eligible to receive the subsidy for those employees unless you withdraw the redundancy notice.
- If your business is considered new or you’ve experienced high growth against last year you can still apply for the wage subsidy extension, this includes pre-revenue R&S start up firms that are recognised by the Callaghan Innovation method. You may need to demonstrate your 40% decline against a comparable 14 day period this year instead of a year on year comparison.
- There are some repayment requirements for if you or your employees are earning less than the wage subsidy (or if you are self employed and you draw less than the subsidy amount from your business each week). Please see the Work & Income website link above for more information.
Government mortgage deferral scheme
The mortgage deferral scheme is being extended from the current end date of 27 September to 31 March 2021. Further details will be made available by the Reserve Bank and New Zealand’s retail banks.
Need more information?
As always, the Villa team is here to help with any questions you may have. Please give us a call on 09 4340 771, we will also be responding to emails but if your question is urgent it is best to call us! Find out contact information here.