COVID 19 - 8 Week Wage Subsidy Extension

The Wage Subsidy Extension applications open on 10 June 2020 and will be open until 1 September 2020 so that employers are able to keep paying their employees during this uncertain time.

What is the Criteria for the Wage Subsidy Extension?

You must have had at least a 40% revenue loss for a continuous 30 day period. The 30 days need to be within the 40 day period before you apply and must be compared to the same/closest period last year.

Other Key Points:

Frequently Asked Questions:

What does the term revenue loss mean?

Can new businesses still apply for the wage subsidy extension?

Can I apply for the wage subsidy on behalf of my casual employee(s)?

Example – Applying for the 8 Week Wage Subsidy Extension:

A business originally applied for the 12 Week Wage Subsidy on Wednesday 1 April 2020, and the 12 Week Payment will expire 12 weeks later on Tuesday 23 June 2020. That means that the earliest the business can apply for the 8 Week Wage Subsidy extension is Wednesday 24 June 2020.

I am going to compare the same 30 day period in 2020 as in 2019 to see if I have a 40% revenue drop.

Tuesday 21 May 2019 to Thursday 30 June 2019  a Revenue = $175,000
Thursday 21 May 2020 to Saturday 20 June 2020 a Revenue = $110,000

When comparing these two periods, the business needs to experience a 40% drop on $175,000 of revenue. The revenue for the period in 2020 can be no more than $105,000 to qualify.

Workings below….

$175,000 x 40% = $70,000
$175,000 less $70,000 = $105,000

As the business did not experience a minimum of 40% revenue loss (Revenue was $110,000, which is $5,000 more than the minimum drop allowed) this means they are not able to apply at the moment.

However, over the next 8 weeks, the business could continually reassess the revenue received and compare it with the same period last year to see if they are eligible.

It may be a case of looking at the business bank accounts daily and comparing whether the previous 30 days have experienced a 40% revenue loss in comparison to the same period in 2019.

We are well positioned to provide advice and support to all our clients as we self-isolate as a country.  This includes guiding your business through this unprecedented situation as they access government supports and entitlements.  While our offices are closed, we are still open for business.

Should you need support during this challenging time, please get in contact with one of our partners.

Alan Macdonald – or 021 324 527

Jack Perniskie – or 03 208 1314

Erin Howes – or 027 208 0262

Caleb Macdonald – or 021 020 04636

Tim Walsh – or 027 436 8663

If you have any general questions, feel free to use our contact us form on the website. 

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