The Government today (14 May 2020) announced an 8 week extension to the wage subsidy scheme for businesses who have sustained a 50% decline in revenue for a 30 day period.
At first glance this sounds like a helpful support package for businesses – but is it really?
What we know
The wage subsidy extension will be available from 10 June 2020 until 01 September 2020
You can’t apply for the wage subsidy extension before 10 June 2020
You must have had, or expect to have, a revenue loss of at least 50% for the 30 days before you apply, compared to the closest period last year
It is this last requirement that is most concerning.
The 30 days prior to application is 11 May 2020 to 10 June 2020, therefore it is primarily targeted at businesses that have a 50% or more revenue decline during Alert Level 2
This wage subsidy extension does not appear to be a saviour for businesses grappling to get back on their feet following the recent 7 week lockdown period, during which many had zero revenue coming in.
We hope that there is clarification of the interpretation in the coming days that ensures support reaches businesses, who at first glance, appear not to qualify for this business support package.