Who can get a COVID-19 Wage Subsidy August 2021 payment

Your business needs to meet the eligibility criteria and agree to meet the obligations in the declaration to be able to get a COVID-19 Wage Subsidy August 2021 payment. It's available to all New Zealand businesses and self-employed people that meet eligibility criteria.

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.

Applications for the third COVID-19 Wage Subsidy August 2021, known as Wage Subsidy August 2021 #3, are open for two weeks between 9am, 17 September and 11.59pm, 30 September 2021.

Information

Applications for the second COVID-19 Wage Subsidy August 2021, known as Wage Subsidy August 2021 #2, that was available between 9am, 3 September 2021 and 11.59pm, Thursday 16 September 2021 are now closed.

When to apply

If you've already applied for a previous COVID-19 Wage Subsidy August 2021, you need to wait until two weeks after you applied before you can apply for the new Wage Subsidy #3, even if you haven't received a payment yet.

If you apply earlier than this, your application for the new subsidy will be declined.

If you applied and were eligible for the Wage Subsidy #2, we'll email you to tell you when you can apply for the new Wage Subsidy #3.

Criteria you need to meet:

  • Your business

    You must operate a business in New Zealand that employs and pays the employees named in your application. By business we mean:

    • a registered business, sole trader or self-employed person (who may or may not employ other employees)
    • a registered charity (incorporated under the Incorporated Societies Act 1908 and registered under the Charities Act 2005, or registered under the Charities Act 2005)
    • an incorporated society (incorporated under the Incorporated Societies Act 1908)
    • a non-government organisation, post settlement governance entity or, under specified circumstances, a commonly-owned group.
      • A commonly-owned group is a business, for the purpose of applying for this subsidy, where one company within the group employs all the employees, who carry out their work at other companies within the group, and the other companies generate the revenue for the group (in order words, the employment and revenue generation functions are separated within the group). The company within the group that employs the staff must be the company that makes this declaration.
    • State sector organisations are generally not eligible.

    You must be in New Zealand, or Australia, in order to be eligible to apply.

  • Your employees

    Each of the employees named in your application must be legally employed by your business, be employed in New Zealand and have not been given notice of redundancy at the date of your application.

    When you apply for a COVID-19 Wage Subsidy August 2021 payment you must not also be receiving a payment under a COVID-19 Wage Subsidy 2021 scheme, the Short-term Absence Payment, or Leave Support Scheme in respect of any of the employees named in your application.

    "Employee" includes you if you are a sole trader or self-employed person that does not employ employees.

  • Decline in your revenue

    The Wage Subsidy August 2021 #3 is available to all eligible businesses in New Zealand affected by the continuation of Alert Levels 3 and 4 from 17 August 2021. This includes businesses operating at lower alert levels.

    Your business must meet the revenue decline test:

    • 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 predict will have, a decline in revenue that can be attributed to the effect the continuation of Alert Levels 3 and 4 from 17 August 2021 has had on your business, and that is:
      • at least a 40% decline over a period of 14 consecutive days between 14 September 2021 and 27 September 2021 inclusive (this is the revenue test period), compared to a typical 14 consecutive days of revenue in the six weeks immediately before to 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.

    You cannot take the effects of Alert Level 2 into account when calculating your revenue decline.

    You can include a fall in projected capital income as revenue for the purpose of an application if:

    • your business is a research and development intensive “start-up” business, and
    • you have no revenue other than seed or venture capital or Government funding, and
    • you’re recognised by Callaghan Innovation as a legitimate research and development start-up business.

    For commonly-owned groups:

    • you must use the default comparator period to calculate the revenue decline test across the business, or
    • you can use the seasonal comparator period to calculate the revenue decline test across the business.

    If one or more of the companies in your commonly-owned group are seasonal in nature, and this makes it harder for the commonly-owned group to meet the 40% revenue decline test using the default comparator period than if they were not seasonal, you can use the seasonal comparator period for the companies that are seasonal in nature, and the default comparator period for the companies that are not seasonal. This will determine the aggregate revenue decline across the commonly-owned group (if any) for the revenue decline test.

  • Evidence from your business

    You must prepare and retain evidence to support this application, such as records that demonstrate:

    • how the decline in your revenue was attributable to the continuation of Alert Levels 3 or 4 from 17 August 2021, and
    • if you're an employer that has highly seasonal revenue:
      • the basis on which you claim your business to be of a seasonal nature, and
      • how the seasonal nature of your business made it harder for your business to meet the 40% revenue decline using the default comparator period than if your business was not of a seasonal nature.
  • Mitigating impact on your business

    Before making an application, you must have taken active steps to mitigate the impact of the continuation of Alert Levels 3 or 4 from 17 August 2021 on your business activities. This includes (but is not limited to) engaging with your bank, drawing on your cash reserves as appropriate, or making an insurance claim. Please retain evidence of the active steps your business has taken.

  • 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.

COVID-19 Resurgence Support Payment

As well as a COVID-19 Wage Subsidy August 2021, you may be able to get the COVID-19 Resurgence Support Payment from Inland Revenue, to help with fixed costs like rent. You can get COVID-19 Wage Subsidy August 2021 payments and the COVID-19 Resurgence Support Payment at the same time.


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