Minister amends wage subsidy scheme

Thursday 02 July 2020

The payroll co-funding scheme has been changed so businesses are also eligible if they can report a 30% loss over three months rather than just one month.

Signed off today by the Treasury Minister, the scheme has now changed in terms of who is eligible to claim Government support to pay 80% of each employee’s wages.

Originally, any business applying only had to prove a 30% loss on the previous month, but this has now been extended to this level of loss over a three-month period – meaning applicants must now demonstrate a drop in turnover dating back to March in order to claim going forward.

Pictured: The scheme which subsidises employee wages has been amended.

Holiday clubs, if they meet the criteria, will also be eligible to claim from now on to ensure they’re able to open and provide childcare during the school holidays. 

Both changes are effective for claims for June 2020 onwards and applications for last month opened yesterday, (Wednesday 1 July). 

Minister for Economic Development Senator Lyndon Farnham said: “We continue to review and improve the payroll support scheme in response to the changing circumstances businesses find themselves in.

“This is unchartered territory for the island, its businesses and, inevitably, unforeseen issues arise as we progress. It is important that the Government monitors the impact, is responsive and is ready to evolve the scheme if necessary.” 

Pictured: Senator Lyndon Farnham.

The scheme has been extended until at least August, when it will be reviewed again by Ministers. 

Government say that in considering the future of the scheme, Ministers will balance the ongoing need to make prudent use of public money with the importance of giving certainty to business, and the importance of avoiding a cliff-edge to any financial support.