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Wage subsidy extension

Government has decided in-principle to extend the wage subsidy scheme. We have also agreed in-principle to extend the mortgage deferral scheme, and to modify the COVID-19 Sick Leave Scheme to make it more accessible. Details will be finalised over the weekend and announced on Monday.

The latest COVID-19 outbreak is obviously disappointing, especially for businesses that have just got up and running again. But we have a plan in place to deal with it.

We're taking action to support businesses and protect jobs following today’s announcement that we're extending the alert levels until 26 August.

Cabinet has agreed in-principle to:

  • extend the wage subsidy nationwide
  • modify the COVID Sick Leave scheme
  • extend the mortgage deferral scheme

Further details on the wage subsidy extension:

The extended wage subsidy will apply nationwide, particularly given the significance of Auckland’s economy to the wider country, and due to the impact Alert Level 2 would have on sectors like hospitality and retail.

The criteria and eligibility requirements for the extension to the wage subsidy will be similar to previous criteria. Given the different nature of the latest outbreak, the Government is taking the weekend to finalise the details. The extension will be available to businesses that have already finished receiving the subsidy, as long as they meet the criteria, and it will cover the period that the current Level 3 restrictions stay in place.

The existing extension to the wage subsidy remains open to applications until September 1. Businesses that haven’t yet accessed that scheme should reassess if they now meet the criteria, following the recent increase in Alert Levels.

Further details on the mortgage deferral scheme extension: 

The Government has also agreed in-principle to an extension of the mortgage deferral scheme.

This is part of the plan to support households after the existing scheme expires on 27 September. 

Further details on the COVID Sick Leave scheme:

Cabinet also agreed in-principle to look at modifying the COVID Sick Leave Scheme. We are very aware that those who are required to self-isolate may be concerned if they do not have any sick leave entitlements left or the business they work for is not eligible for the scheme under current settings.