Businesses that have experienced a 40% downturn will be eligible for the extended wage subsidy. This means an additional 40,000 employers will be able to receive the wage subsidy to aid their recovery.
In addition, the window to apply for the Small Businesses Loan Scheme has been extended. Employers will now have until July 24 to apply for these loans.
Finance Minister Grant Robertson explains, "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.”
Social Development Minister Carmel Sepuloni says that that almost $11 billion has been paid in subsidies, helping 1.66 million workers.
“About 89% (of employers) said the wage subsidy will help them keep operating for the foreseeable future, while only 6% of those surveyed have indicated they are considering redundancies in the next few months,” Sepuloni says.
The wage subsidy and small business cashflow scheme are part of the extensive support the Government has made available for businesses, which includes:
- The $11 billion wage subsidy and $3.9 billion extended wage subsidy
- The $5.2 billion Small Business Cashflow Loan Scheme
- $3.1 billion for business tax refunds through the loss carry-back scheme
- $2.8 billion for building depreciation tax deductions and other tax measures
- The $6.25 billion Business Finance Guarantee
- Commercial rent support, including $40 million to cover arbitration costs
- The $400 million initial support for the Tourism sector
- A $600 million aviation support package
- Funding for business advice through the Regional Business Partner Network
- A $400 million package to encourage R&D