From June 10 until 1 September 2020, businesses will be able to apply for the Extended Wage Subsidy Scheme. These payments will be available to support employers, including sole traders, who are still significantly impacted by COVID-19 after the Wage Subsidy ends.
The criteria regarding 'Loss of Revenue' has changed, and now means that you must have had a revenue loss of at least 40% for a continuous 30 day period. This period needs to be in the 40 days before you apply (but no earlier than 10 May 2020) and must be compared to the closest period last year.
Other Key Points About the Wage Subsidy Extension:
If you are applying for an employee that you previously applied for the Wage Subsidy for, you need to wait until their 12 week Wage Subsidy has finished before you apply.
It will cover an 8 week period from the date you submit your application.
It will be paid to you as a lump sum of $4,686.40 for each full time employee and $2,800 for each part-time employee, which equates to weekly payments (over the 8 week period) of $585.80 (for a full-time) and $350 (for part-time).
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an employee notice of redundancy before you apply, you can't apply for those employees unless the redundancy notice is withdrawn.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.
For more information about the Extended Wage Subsidy Scheme visit work and Income alternatively, feel free to get in touch with us.