Businesses with a 40 per cent reduction in revenue due to Covid-19 are now eligible for the wage subsidy extension.
For a number of weeks we have been vocally advising that the Government needed to urgently reassess the wage subsidy extension criteria, for the hospitality sector specifically. Many members have identified that they are still significantly affected by the Covid-19 downturn but would likely not meet the 50% reduction in revenue threshold, although they have seen a significant increase in costs. We are pleased that the Government has announced it is dropping the bar from 50 per cent to 40 per cent reduction in revenue.
Finance Minister Grant Robertson confirmed that dropping the changes follows feedback on the threshold being set too high.
Robertson said: “While many New Zealanders are now back at work and our economy is one of the most open in the world, there are businesses that will feel the impact of this global pandemic for longer.
“The tourism, retail and hospitality sectors will in particular be supported by the extended wage subsidy and cashflow support.”
Small businesses will also be given more time to apply for the Small Business Cashflow Loan Scheme, with the application date being extended from 12 June to 24 July.
This week’s advocacy from the Restaurant Association in relation to the wage subsidy: