As a result of the COVID-19 pandemic and the government’s initiation of a level 4 alert, wage subsidies will be available for all businesses that are significantly impacted by COVID-19 including:
The government has removed the cap on wage subsidies that can be paid to employers affected by COVID-19.
There are some requirements you must meet to qualify for the wage subsidy:
The amount available is fixed:
$350 a week for a part time employee.
Employers can apply for a lump sum payment for their employees over 12 weeks if they have experienced a 30% actual or predicted decline in revenue over the period of a month when compared to a month last year, and that decline is related to COVID-19.
If you apply for the subsidy for your employees, you must undertake to use your best endeavours to pay them a minimum of 80% of their normal income for the 12 weeks. Where this is not possible, in particular, where a business has no activity during shutdown and the workers are not working any hours – employers must pass on at least the whole value of the wage subsidy to each affected worker.
Businesses must also undertake to keep employees in employment for the period of the subsidy.
For some employers, there will be difficult decisions to make surrounding staff whose salaries (even at 80%) are much higher than the available lump sum.
Other businesses may find it difficult to ascertain whether they have experienced a 30% actual or predicted loss in revenue.
There are difficult decisions ahead for businesses. Gibson Sheat wants to continue to support our community during these unprecedented times by providing sound legal advice.
Please contact Gibson Sheat for a strategic discussion if your business is affected by COVID-19 and you would like to consider your options.
|Claire Byrne|||||email Claire|||||P: 04 916 7483|
|Mike Gould|||||email Mike|||||P: 04 916 6302|