Wage Subsidy Extension Announced

Government willing to extend wage subsidies if demand outstrips $5 ...

The wage subsidy extension payment will be available to support employers, including sole traders who are still significantly impacted by Covid-19 after the current wage subsidy ends.

The weekly rates will be the same as under the current wage subsidy, and will provide an 8-week lump sum payment per named employee. The wage subsidy extension will be available from 10th June 2020 until 1st September 2020 so employers can keep paying their employees.

Key points about the wage subsidy extension include:

  • You must have had, or expect to have a revenue loss of at least 50% for the 30 days before you apply, compared to the closest period last year.
  • It will cover 8 weeks per employee from the date you submit your application.
  • It will be paid to you as a lump sum at the same weekly rate as the Wage Subsidy.
  • You’ll need to agree to certain obligations, such as to:
    • pass the subsidy on to your employees
    • retain your employees for the duration of the subsidy
    • do your best to pay your employees at least 80% of their normal pay
    • take active steps to alleviate the impact of Covid-19 on your business.

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