New wage subsidy targets 470,000 jobs

The government has revealed details of a fresh wage subsidy scheme that is expected to cover 470,000 jobs and cost about $510 million.

Businesses across the country able to show they have suffered a 40 per cent drop in revenues due to Covid-19 will be able to access the third round of support. Payments will cover the two weeks past September 1.

Grant Robertson, Minister of Finance, announced details of the scheme on August 17 and it will be open for applications from August 21.

The previous rounds of wage subsidies, which aim to help businesses trade through the pandemic and limit job losses, will eventually have covered wages for a total of up to 20 weeks. 

The latest cash boost follows an outbreak of Covid-19 in the community that saw Auckland move to alert level three and the rest of the country into level two on August 12.

To be eligible for the help, businesses need to show a 40 per cent fall in revenue during a period of at least 14 days between August 12 and September 10, when compared to last year.

Robertson, pictured, said the government also expects businesses employing 460,000 staff will now qualify for wage subsidies under the previous round of the scheme, which remains open for applications until September 1.

“Businesses that haven’t yet accessed that scheme should reassess if they now meet the criteria, following the recent increase in alert levels.”

The extra support means the total cost of wage subsidies is expected to hit $1.6 billion. Robertson added such payments could be extended or target parts of the country in future, if necessary.

Treasury officials are also reviewing all the business finance support schemes the government has in place to see what longer term support can be put in place to respond to changing alert levels.