The Wage Subsidy August 2021 is a payment to support employers throughout New Zealand, so they can continue to pay employees and protect jobs for businesses affected by the move to Alert Level 4 on 17 August 2021.
You can apply for a contribution towards the wages of your employees (or yourself, if you are self-employed) for a two week period. You can't apply for the same employee twice for the same period. The subsidy is paid at a rate of $600 a week for full-time employees and $359 for part-timers.
Your business needs to meet the eligibility criteria and agree to meet the obligations in the declaration to be able to get a COVID-19 Wage Subsidy August 2021.
Criteria You Need to Meet:
- Your business (a registered business, sole trader or self-employed person) must operate in New Zealand and is the business that employs and pays the employees named in your application.
- Each of the employees named in your application must be legally employed by your business, be employed in New Zealand and have not been given notice of redundancy at the date of your application. "Employee" includes you if you are a sole trader or self-employed person that does not employ employees.
- Your business must meet the revenue decline test:
- your business is being or will be affected by the move to Alert Level 4 on 17 August 2021, and
- your business has had, or you predict will have, a decline in revenue that can be attributed to the effect the move to Alert Level 4 on 17 August 2021 has had on your business, and that is:
- at least a 40% decline over the period between 17 August 2021 and 30 August 2021 inclusive (this is the revenue test period), compared to a typical 14-day consecutive period of revenue in the six weeks immediately before the move to Alert Level 4 on 17 August 2021 (this is the default comparator period), or
- if your business has highly seasonal revenue, you must have at least 40% decline over the revenue test period compared to the same 14 consecutive days in 2020 or 2019 (this is the seasonal comparator period), provided you can demonstrate that the seasonal nature of your business makes it harder to meet the 40% revenue decline using the default comparator period than if your business was not of a seasonal nature, and
- the calculations and comparisons above cannot include any payments made to you from:
- this subsidy
- other COVID-19 wage subsidy schemes
- the Short-term Absence Payment
- the Leave Support Scheme
- the COVID-19 Essential Workers Leave Support scheme
- the COVID-19 Resurgence Support Payment
- the COVID-19 Small Business Cashflow scheme
You must prepare and retain evidence to support this declaration, such as records that demonstrate:
- how the decline in your revenue was attributable to the move to Alert Level 4 on 17 August 2021, and
- if you're an employer that has highly seasonal revenue:
- the basis on which you claim your business to be of a seasonal nature, and
- how the seasonal nature of your business made it harder for your business to meet the 40% revenue decline using the default comparator period than if your business was not of a seasonal nature.
COVID-19 Resurgence Support Payment
Your business may also be able to get the COVID-19 Resurgence Support payment from Inland Revenue. It's to help with fixed costs like rent.
** You CAN get this as well as the COVID-19 Wage Subsidy August 2021 **
Before making an application, you must have taken active steps to mitigate the impact of the move to Alert Level 4 on 17 August 2021 on your business activities. This includes (but is not limited to) engaging with your bank, drawing on your cash reserves as appropriate, or making an insurance claim.