Budget 2020

15 May 2020

The government announced yesterday it will spend $50 billion over the next four years on getting the New Zealand economy moving again.  However only $15.9 billion was allocated in the Budget, which included $3.2 billion targeted to an extension to the wage subsidy scheme and $1.6 billion for trades and apprenticeship training.

Extension of the Wage Subsidy Scheme

The Government’s main announcement was the extension to the wage subsidy scheme from 10 June 2020.

To qualify, businesses must have suffered a 50% reduction in turnover over the 30 days prior to their application compared to last year.  We expect that this will be predominantly picked up by the retail, hospitality and tourism sectors who will continue to be significantly affected by the COVID-19 related business downturn.

The subsidy will cover eight weeks and be paid as a lump sum to employers, at the same weekly rates as the current scheme.

Employers will need to submit a new application through the Work and Income website.

Please contact us for more specific advice regarding the wage subsidy and how it applies to your business.

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