Government announces further extension to the wage subsidy
By: Amanda Douglas
Published: 20/08/2020
On 14 August 2020, the Government announced an extension of the COVID-19 Alert Level Three restrictions for Aucklanders and the Alert Level Two restrictions for all other parts of New Zealand.  At this stage, those restrictions will remain in place until 26 August 2020.  However, cabinet has committed to reviewing them on 21 August 2020. 

The extension to the Alert Level restrictions for New Zealanders has been accompanied by the announcement that there will be a third extension to the Government’s wage subsidy scheme.  This has been described as the Resurgence Wage Subsidy.

Employers who have had, or are expected to have, a 40 per cent decline in revenue because of COVID-19 for a period of 14 days between 12 August and 10 September compared to the same period in 2019 will be eligible to receive this funding. 

Despite Level Three restrictions only being in place in Auckland at the time of writing, the third wage subsidy extension will be available to businesses nationwide.  This is likely a reflection of the substantial influence that Auckland has over the nation’s economy.

Applications can be made to MSD from 21 August to 3 September 2020.  If you are already receiving funding under the first wage subsidy extension or the leave support scheme, you will not be able to receive the Resurgence Wage Subsidy in addition to those payments.

The declarations that employers have been required to make under the wage subsidy scheme and the extension will also apply in respect of the resurgence scheme.
 
Download article in PDF format



Enter security code:
 Security code

Wynn Williams Christchurch
Level 5, Wynn Williams House, 47 Hereford Street, Christchurch 8013, New Zealand.
PO Box 4341, DX WX11179, Christchurch 8140.
+64 3 379 7622
+64 3 379 2467
Wynn Williams Auckland
Level 25, Vero Centre, 48 Shortland Street, Auckland 1010, New Zealand.
PO Box 2401, Shortland Street, Auckland 1140.
+64 9 300 2600
+64 9 300 2609
Top

This page is best viewed in an up-to-date web browser with stylesheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so. The latest version of Firefox, Safari or Google Chrome will work best if you're after a new browser.