Government extends wage subsidy

15 May 2020

What does it mean for your Real Estate Business?

In Budget 2020 the Minister of Finance announced an extension to the Wage Subsidy Scheme.

The wage subsidy scheme has been enormously popular paying out more than 10 Billion to support New Zealand businesses and jobs.

From June 10, businesses that have suffered, or expect to suffer, revenue loss of at least 50 per cent for the 30-day period prior to the application date versus the nearest comparable period last year will be eligible for the extension of the scheme.

The extension focuses on businesses who are the most adversely affected by covid-19.

It will be available for a further eight-week period for those who have suffered a 50% reduction in turnover over the 30 days prior to application compared to last year.

It will follow on directly from the end of the first twelve-week scheme. It is estimated to cost up to $3.2 billion.

The application for the expanded scheme is open for eight weeks from June 10 and will be paid as an eight-week lump sum to employers at $585 per week, for full-time workers. ($4,680 per full time worker) and $350 per week for part time workers ($2,800 per part time worker working less than 20 hours per week)

What does this mean for your Real Estate business?

Based on what we have seen in the market many Real Estate businesses will qualify for the extended scheme.

Qualification for the extended subsidy will depend on several factors such as the level of activity post lockdown as well as the level of activity for the same 30-day period last year.

If you require any assistance in determining eligibility for the Extended Wages Subsidy scheme contact one of our team who will be happy to assist on a complementary basis.

Disclaimer:This information is general in nature and should not be relied on as advice. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs and seek professional advice before making any decisions based on this information.

Stay in touch. Please do not hesitate to contact the Bentleys Team.

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