COVID-19 SUBSIDY UPDATE – JUNE 2020
COVID-19 WAGE SUBSIDY EXTENSION
A Wage Subsidy Extension payment will be available to support employers, including sole traders, who are still significantly impacted by COVID-19 after the Wage Subsidy ends.
The Wage Subsidy Extension will be available from 10 June 2020 until 1 September 2020 so employers can keep paying their employees.
Applications open at 9am 10 June 2020
The Criteria to meet the second wage subsidy has changed from that announced with the Budget in May in that the revenue loss must be at least 40% over a 30 day period compared to the same time last year. The period needs to be in the 40 days before you apply, but the start date can be no earlier than 10 May 2020.
Other key points
- If you’re applying for an employee you’ve already applied for the Wage Subsidy for, you can’t apply for them until their 12 week Wage Subsidy has finished.
- 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.
- If you’ve given an employee notice of redundancy before you apply, you can’t apply for those employees unless the redundancy notice is withdrawn.
- 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 mitigate the impact of COVID-19 on your business.
SMALL BUSINESS CASHFLOW LOAN EXTENSION
The date to apply for this loan has been extended from 12 June 2020 to 24 July 2020 for eligible businesses wishing to apply.
Loans repaid within 12 months will be interest free. For those loans not repaid within 12 months, interest will accrue at 3% from the date the loan was paid to the recipient.
COVID-19 INCOME RELIEF PAYMENT
If you lose your income from either employment or self-employment between 1 March 2020 to 30 October 2020 due to COVID-19, you may be eligible for the COVID-19 Income Relief Payment.
You can get up to 12 weeks of payments, to help with living costs after a sudden job loss, and give you time to find other work.
If you’re eligible for the payment, you can get:
- $490 per week if you were previously working 30 hours or more a week
- $250 per week if you were previously working 15 hours to 29 hours a week.
You don’t need to pay tax on this payment.
The Income Relief Payment will stop after you’ve had 12 weeks of payments, or if your situation changes and you no longer qualify.
These people must:
- Be available for, and actively seeking, suitable work opportunities while they receive the payment;
- Take appropriate steps towards gaining new employment; and
- Identify and take opportunities for employment, re-deployment and training.