Finance Minister Grant Robertson has announced the Government will reinstate its COVID-19 Wage Subsidy Scheme and COVID-19 Resurgence Support Payment (RSP). Eligible businesses will be able to apply for both payments.
In addition, the Short Term Absence Payment (for employees who are required to self-isolate to wait for Covid-19 test results) and Leave Support Scheme (for employees who are told to isolate because of Covid-19) both remain in operation. The rates of these payments are still to be confirmed, but the Government has indicated that they will be increased in line with the Wage Subsidy Scheme.
Wage Subsidy Scheme
Under the Wage Subsidy Scheme, businesses will be eligible for $600 per week per full-time employee and $359 per week per part-time employee.
As of 9:00am 20 August, businesses can apply for the subsidy (during a two week window) if they anticipate they will experience a 40% loss of revenue due to Alert Level 4 restrictions being in place. Other criteria are likely to apply. It is expected that payments will reach businesses within three days of their application.
Resurgence Support Payment (RSP)
The RSP will also be reinstated and available for businesses that have experienced at least at 30% decrease in revenue. The RSP will allow businesses to receive up to $1500, plus an extra $400 per employee up to a maximum of 50 full-time employees. Unlike the wage subsidy scheme, the RSP does not have to be applied directly to employees. Applications will open 8:00am on 24 August.
More information and how to apply
More details of the reinstated schemes will be updated here as they are confirmed. For the latest information, please also refer to the following useful webpages:
Work & Income: Wage Subsidy Scheme (Register your interest here for email updates)
Inland Revenue: Resurgence Support Payment
Government COVID-19 website: Financial support for businesses