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Wage Subsidy 2

Wage Subsidy August 2021 #2

Applications for the initial two-week Wage Subsidy August 2021, which opened on 20 August 2021, close at 11.59pm on Thursday 2 September 2021.

Applications for a second round of Wage Subsidy – to be known as Wage Subsidy August 2021 #2 – open at 9.00am on Friday 3 September.

The second round of Wage Subsidy is for all businesses and self employed people who have or predict at least a 40% decline in their revenue from 31 August to 13 September and meet all eligibility criteria. 

Applications can be made online for both the August 2021 Wage Subsidy and Wage Subsidy #2 via Work and Income here.

Businesses that applied for the initial Wage Subsidy August 2021 payment and who meet all the eligibility criteria for Wage Subsidy #2, can apply for another wage subsidy payment two weeks after their previous application. So, if someone applied on 23 August, they could apply for Wage Subsidy #2 on 6 September. Early applications will not be accepted.

Businesses who have applied for the August Wage Subsidy will receive an email from Ministry of Social Development to let them know when they can apply for the second round of wage subsidy.

Businesses that didn’t apply for the initial wage subsidy are welcome to apply for Wage Subsidy #2 from 3 September providing they meet all eligibility criteria.

Are you eligible?

Before applying, businesses must ensure that their revenue assessments meet the criteria.

Eligibility criteria includes the requirement of businesses to demonstrate they have had, or predict to have, a decline in revenue that can be attributed to the effect of the move to Alert Level 4 on 17 August 2021.

The revenue test period for August 2021 Wage Subsidy #2 is the period between 31 August 2021 and 13 September 2021 inclusive.

Businesses must demonstrate at least a 40% decline over the revenue test period, compared to a typical 14-day consecutive period of revenue in the six weeks immediately before the move to Alert Level 4 on 17 August 2021 (this is the default comparator period).

Employers cannot receive the Wage Subsidy for any employees for whom they are receiving the Leave Support Payment or Short Term Absence Payment.

Important: Making your declaration

In applying for Wage Subsidy, businesses must agree to a declaration which clearly states that any non-compliance may result in civil proceedings and/or punishment under the Crimes Act 1961.

Some of the key points within the declaration are:

  • The applicant is required to prepare and retain evidence to support the revenue decline calculation. Actions taken to mitigate the impacts of Alert Level changes must also be documented.
  • The applicant must have obtained consent from employees to include them in the application and sharing their personal details.
  • The applicant agrees to specific conditions regarding retaining and remunerating the employees for whom they have applied for the subsidy.
  • Applicants must immediately repay the subsidy if they are no longer entitled to it.
  • A public register will name those that receive the subsidy.

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