Wage Subsidy #2: Clarification of revenue decline test

10 September 2021.

The Government has clarified the revenue decline test for the COVID-19 Wage Subsidy August 2021 #2 includes Alert Level 2.

Businesses that experience or predict a 40% revenue drop due to a combination of the effects of Alert Levels 4, 3 and 2 on their business (but not the effect of Alert Level 2 alone) are able to apply for the second wage subsidy payment, provided they meet all the eligibility criteria.

This takes into account alert levels outside of Auckland dropping from Alert Level 3 to Alert Level 2 on Tuesday 7 September 2021 at 11.59 pm.

To be eligible for the COVID-19 Wage Subsidy August 2021 #2 a business must have had a decline in its revenue between 31 August 2021 and 13 September 2021 (inclusive) of at least 40% when compared to the relevant comparison period. This decline must have been caused by either:

  • the continuation of Alert Levels 3 or 4, or
  • a combination of Alert levels 3, 4 or 2.

The decline in revenue can't be attributed only to the effect Alert Level 2 had, or was predicted to have, on the business.

This clarification applies to businesses that have already applied as well as new applications for COVID-19 Wage Subsidy August 2021 #2.

It's important businesses prepare and retain evidence to support their application. Businesses that have already applied will need to update their evidence if they wish to take into account the effect Alert Level 2 has had on their business too.

Because this is a clarification of COVID-19 Wage Subsidy August 2021 #2, no change will be made to the declaration.