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In order to qualify for the wage subsidy, there is specific criteria that needs to be met. Bearing in mind that this was introduced last week (before the shut down announcement), the criteria is:

• Revenue must show a decline of at least 30% .. this is measured by comparison to the same period last year (for businesses over a year old) or comparison to the previous month (if in the first year of business).
• The revenue decline is due to the virus and no other reason
• Staff that you apply for the subsidy need to be retained and be paid a minimum of 80% of their normal wage/salary
• This subsidy is available to employers. It is also available to self employed people and shareholder employees that work in the business but don’t necessarily pay wages but get paid via drawings.

Under current tax law, any government subsidy is liable to income and GST. Any payments to employees need to be taxed in the normal way.

To apply for this click here to go to the application page

To keep update with the government announcements relating to business click here