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August 2021 Lockdown and Wage Subsidy Update

Fiona Gray —

We have received some questions from parishes asking if the Diocese is intending to apply for the government wage subsidy in response to the lockdown from 17 August 2021.

We have not made an application for the initial two weeks but there is an opportunity to apply in a round that opens on September 3.

We believe the nature of the lockdown differs from that in 2020 and parishes are in a stronger position than they were previously. For example, the lockdowns in 2020 resulted in parishes looking at implementing more online giving options and subsequently have a more spread and consistent cash flow.

Of course, there will always be one off external revenue that may not materialise as a result of the August lockdown. This could include cancelled concerts, fundraising events etc. These are likely to not be regarded as regular sources of income for the purposes of the decrease in income.

We note these rounds require more evidence to be provided than in the past and any application needs to consider the following points (based on the 1st round conditions closing 2 September 2021):

  1. Your business is being or will be affected by the move to Alert Level 4 on 17 August 2021; and
  2. Your business has had, or you are predicting will have, a decline in revenue that is attributable to the effect the move to Alert Level 4 on 17 August 2021 has had on your business and that is:
  • of at least 40% over a period of 14 consecutive days between 17 August 2021 and 31 August 2021 (inclusive) (revenue test period), when compared to a typical 14-day consecutive period of revenue in the six weeks immediately prior to the move to Alert Level 4 on 17 August 2021 (default comparator period); or
  • if you are an employer that has highly seasonal revenue, of at least 40% over the revenue test period when compared to the same 14 consecutive days in 2020 or 2019 (seasonal comparator period), provided you can demonstrate that the seasonal nature of your business makes it harder to meet the 40% revenue decline using the default comparator period than if your business was not of a seasonal nature; and
  • in relation to both the calculation of revenue for the test period and the calculation of the revenue for the relevant comparator period, exclusive of any payments made to you from this subsidy, other COVID-19 Wage Subsidy schemes, the COVID-19 Short-term Absence Payment scheme, COVID-19 Leave Support schemes, COVID-19 Essential Workers Leave Support scheme, COVID-19 Resurgence Support Payment scheme or the COVID-19 Small Business Cashflow scheme.

Congratulations if you have made it to here! 

It is complex, but If your parish considers that the above conditions would apply to them and in relation to Covid 19 level 3 restrictions, then please get in contact with the Diocesan Office (Fiona Gray or Andrew Metcalfe, or phone 03 488 0821) to discuss by Friday September 3rd so that we can look at getting an application started. 

We would need information and estimates sent to us early the following week.