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Covid-19 Financial Support Update
Wage Subsidy August 2021 #5
[/vc_column_text][gem_divider margin_top=”10″][vc_column_text]Applications for the fifth COVID-19 Wage Subsidy August 2021, known as Wage Subsidy August 2021 #5, are open for two weeks between 9 am, 15 October and 11.59 pm, 28 October 2021.
Applications for Wage Subsidy #4 are now closed. It was available between 9 am, 1 October 2021 and 11.59 pm, Thursday 14 October 2021.
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 payment. It’s available to all New Zealand businesses and self-employed people that meet eligibility criteria.
The Wage Subsidy August 2021 #5 is available to all eligible businesses in New Zealand affected by the continuation of Alert Levels 3 and 4 from 17 August 2021. This includes businesses operating at lower alert levels.
Your business must meet the revenue decline test:
- your business is being or will be affected by the continuation of Alert Levels 3 or 4 from 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 continuation of Alert Levels 3 and 4 from 17 August 2021 has had on your business, and that is:
- at least a 40% decline between 12 October 2021 and 25 October 2021 inclusive (this is the revenue test period), compared to a typical 14 consecutive days 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 cannot take the effects of Alert Level 2 into account when calculating your revenue decline. If the area your business is in changes alert level during the revenue test period, see note below.
You can include a fall in projected capital income as revenue for the purpose of an application if:
- your business is a research and development intensive “start-up” business, and
- you have no revenue other than seed or venture capital or Government funding, and
- you’re recognised by Callaghan Innovation as a legitimate research and development start-up business.
The full eligibility details and obligations are set out in the declaration, which you must read and agree to when you apply for a COVID-19 Wage Subsidy August 2021 payment. (Declaration)
The Wage Subsidy August 2021 will cover a two week period at the rate of:
- $600 a week for each full-time employee retained (20 hours a week or more)
- $359 a week for each part-time employee retained (less than 20 hours a week).
If you work variable hours (or your employee does), you can use an average to work out what rate to apply for.
Use the average hours worked each week:
- over the last 12 months, or
- over the period of time you (or they) have been employed (if it’s less than 12 months).
If the average hours are:
- 20 or more, apply for the full-time rate
- less than 20, apply for the part-time rate.
For more info, please click HERE.
Please feel free to contact us if you need help with these applications and any further business services.[/vc_column_text][vc_separator][vc_column_text]Please find us on:
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