Tax Specialsts Auckland
Chartered Accountants


COVID 19 – Wage Subsidy Extension

If your wage subsidy is coming to an end and you are still experiencing adverse impact of COVD 19 you may be able to apply for wage subsidy extension which is available to support employers, including self-employed people, who are still significantly impacted by COVID-19.

Application for the extension of wage subsidy cannot be made before the employees 12th week wage subsidy has finished.

  • Wage subsidy extension covers an 8 week period.
  • Wage subsidy extension can be applied for, even if you haven’t applied for the Wage Subsidy

Qualifying Criteria

  • Business must have experienced a minimum 40% decline in revenue for a continuous 30 day period. This period needs to be in the 40 days before the application date (but no earlier than 10 May 2020) and must be compared to the closest period last year. The decline must also be related to COVID-19.
  • For example, you apply on 29 June 2020. Your 40% decline in revenue must be for a continuous 30 day period between 19 May and 28 June 2020.
  • The 40 day window is to give employers enough time to calculate their revenue loss and engage with their employees before applying for the subsidy. The 40 days cannot start earlier than 10 May 2020.

Businesses operating for less than a year or have high growth

  • New businesses which have been operating less than a year, or high growth businesses (e.g. that have had a significant increase in revenue), can apply for the Wage Subsidy Extension.
  • To determine whether these businesses meet the 40% decline in revenue assessment, they must compare their revenue against a previous month, or 30 days, that gives the best estimation of the revenue decline related to COVID-19.
  • For example, 40% loss of revenue attributable to COVID-19 comparing the 30 days before you apply to the closest period in 2019.

The business must have taken active steps to mitigate the financial impact of COVID-19.

This could include:

  • drawing from cash reserves (as appropriate)
  • activating business continuity plan
  • making an insurance claim
  • proactively engaging with bank
  • seeking advice and support from:
    • the Chamber of Commerce
    • a relevant industry association
    • the Regional Business Partner programme.

Retention of Employees

Employers are required to agree that, for the duration of the Wage Subsidy Extension, they will retain the employees the subsidy was paid for.

If you are receiving the COVID-19 Wage Subsidy Extension, you must:

  • try your hardest to pay staff at least 80% of their usual wages;
  • if that isn’t possible, pay at least the rate of the Wage Subsidy Extension that applies to that employee
  • if the employee’s usual wages are lower than the rate of the Wage Subsidy Extension, continue paying that amount for the duration of the subsidy.

Payment Rates (same as original wage subsidy)

The subsidy will be paid at a flat rate of:

  • $585.80 for people working 20 hours or more per week (full-time rate)
  • $350.00 for people working less than 20 hours per week (part-time rate).

The subsidy is paid as a lump sum and covers 8 weeks per employee from the date of submission of application.

To apply use the following link

Your team at Roberts & Associates Ltd