Repaying COVID-19 August 2021 wage subsidies

Find out when you need to repay COVID-19 Wage Subsidy August 2021 payments and how to repay. The full eligibility details and obligations are set out in the declaration, which you must read and agree to when you apply for a COVID-19 Wage Subsidy August 2021 payment.

When you need to repay

You need to repay some or all COVID-19 Wage Subsidy August 2021 payments if you:

  • fail to meet any of the obligations about how you must use the subsidy; or
  • were not or stopped being eligible for the subsidy or any part of the subsidy, including where you predict that you will meet the revenue decline test but, as a result of your actual revenue, you do or did not;
  • provide false or misleading information in your application; or
  • receive insurance such as business interruption insurance for any costs covered by the subsidy.

You may also voluntarily repay the wage subsidy if you met the criteria but no longer require it. Refer to the wage subsidy repayment form. We will then contact you to discuss your repayment and confirm the repayment amount.

If you're not sure whether you need to repay a COVID-19 Wage Subsidy August 2021, call us on 0800 40 80 40.

You must prepare and retain evidence to support your application for COVID-19 Wage Subsidy August 2021 payments.

Main reasons you may need to repay:

  • Have money left over after paying wages

    If you have money left over, for example an employee no longer works for you, you can use their remaining subsidy to pay other affected employees.

    If there are no other employees to use the subsidy for, then the remaining COVID-19 Wage Subsidy August 2021 must be paid back.

  • Redundancies

    If a business makes an employee redundant during the period they are in receipt of a wage subsidy for that person, and the person will remain employed until the end of that period, the business can use the subsidy to pay the person until the end of that period.

    However, if the person does not remain employed until the end of the period the business is in receipt of the wage subsidy for that person, the business can use the subsidy to pay the person until they are not employed but must repay the remaining subsidy back to the Ministry of Social Development.

    The COVID-19 Wage Subsidy August 2021 cannot be used to pay for notice periods extending beyond the period for which the subsidy is paid nor can it be used to pay any other redundancy payments under the employee’s employment contract (including any leave payments).

  • 40% decline in revenue

    When you applied for COVID-19 Wage Subsidy August 2021 #3, you declared that:

    • your business is being or will be affected by the continuation of Alert Levels 3 or 4 from 17 August 2021, and
    • your business has had, or you predicted will have, a decline in revenue that can be attributed to the effect the continuation of Alert Levels 3 or 4 from 17 August has had on your business, and that is:
      • at least a 40% decline over the period between 14 September 2021 and 27 September 2021 inclusive (this is 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), or
      • if your business has highly seasonal revenue, you must have at least 40% decline over the revenue test period compared to the same 14 consecutive days in 2020 or 2019 (this is the seasonal comparator period), provided you can demonstrate that the seasonal nature of your business makes it harder to meet the 40% revenue decline using the default comparator period than if your business was not of a seasonal nature, and
      • the calculations and comparisons above cannot include any payments made to you from:
        • this subsidy
        • other COVID-19 Wage Subsidy schemes
        • the Short-term Absence Payment
        • the Leave Support Scheme
        • the COVID-19 Essential Workers Leave Support scheme
        • the COVID-19 Resurgence Support Payment
        • the COVID-19 Small Business Cashflow scheme.

    Business doesn't meet the revenue decline test

    If you haven’t met the revenue decline test you must repay the subsidy.

  • Employee resigns

    If one of your employees voluntarily leaves during the two weeks of a COVID-19 Wage Subsidy August 2021, you need to tell us. You can't claim another subsidy for that person.

    If your employee resigns, any remaining subsidy can be used for the wages of other affected employees. A COVID-19 Wage Subsidy August 2021 is designed to keep your employees connected to you.

    If there are no other employees to use the subsidy for, then the subsidy must be paid back.

  • Wage Subsidy August 2021 payments that have ended

    Initial Wage Subsidy August 2021

    • Applications opened 9am, 20 August 2021 and closed 7am, 3 September 2021.
    • To meet the revenue decline test for the initial Wage Subsidy payment, you must have had at least 40% decline in revenue over any consecutive 14 day period between 17-31 August 2021 (inclusive), due to the effects of Alert Level 4 or 3. Initially the revenue test period was 17-30 August.
    • Read the declaration for the initial Wage Subsidy.

    Wage Subsidy August 2021 #2

    • Applications opened 9am, 3 September 2021, closed 11.59pm, 16 September 2021.
    • To meet the revenue decline test for the Wage Subsidy #2 payment, you must have had at least 40% decline in revenue over a consecutive 14 day period between 31 August and 13 September 2021, due to the effects of Alert Level 4, 3 or 2 (not Alert Level 2 only)
    • Read the declaration for Wage Subsidy #2

    You need to retain evidence to support your declaration of revenue decline for the period you use.

How to repay the subsidy

You can fill out the online form. You'll need your:

  • business name
  • IRD number
  • New Zealand Business Number (NZBN), if you have one
  • phone number
  • email address
  • postal address.

You'll also need to tell us the amount you need to repay.

Once we process the form, we'll be in touch to confirm how to make the repayment.

After you've made the repayment

We'll update your details in the employer list within 24-48 hours. This is where people can search for employers who have received COVID-19 wage subsidies.

If you made a:

  • full repayment, you'll no longer be in the list
  • part repayment, the amount of money paid to you will be updated
    • the number of employees won't change as we're unable to update this.

The information on this page is a summary of the eligibility criteria and obligations set out in the declaration for the COVID-19 Wage Subsidy August 2021.

It does not replace the terms of the declaration and if there are any differences between this page and the declaration, the declaration prevails.