COVID-19 Wage Subsidy Extension and the New Resurgence Wage Subsidy

With less than one week remaining, now is the time for all businesses (including self-employed contractors) to review whether or not they are eligible to apply for the COVID-19 Wage Subsidy Extension before the 1 September deadline. 

Many businesses have generally reported an increase in sales for July due to customers playing catch-up after the first lockdown. Unfortunately, this month’s sudden lockdown announcement has put a dampener on this rebound for many businesses. 

This Wage Subsidy Extension should not be confused with the new Resurgence Wage Subsidy that was announced on Monday 10 August. 

These are two different Government subsidies. You CANNOT receive more than one subsidy at the same time. 

As there is an overlap of the qualifying period and various dates, it can be very confusing to determine which subsidy is best for your business and when you can apply. 

You can apply for either of these subsidies regardless of whether or not you have previously benefitted from the first Wage Subsidy announced last April and it is important to understand that the definition of Revenue refers to sales turnover not Net Profit. 

We have prepared the following table, including links to the Work and Income website, to help you evaluate which subsidy your business is eligible to apply for: 

For more information on the Wage Subsidy Extension click here
For more information on the Resurgence Wage Subsidy click here

If you need help to determine if you are eligible, please call one of our advisors or email: reception@wt.co.nz and we will respond within 48 hours. 

Time is running out, so don’t miss out.