Government announces further extension to the wage subsidy

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.