The Ministry of Social Development (MSD) has overpaid $10 billion in wage subsidy money and refuses to ask businesses who wrongly retained or obtained the money to pay it back.

If the money is not repaid, every taxpayer will each have to pay several thousands of dollars in taxes to pay back the debt the government has incurred. 

The huge amount of money given away has directly contributed to inflation, increasing prices and the cost of living crisis.

While every day New Zealanders have struggled to make ends meet, business profitability in Aotearoa skyrocketed in a post-covid world.

One woman’s businesses received $45 million in wage subsidy payments, despite being able to trade normally for a large portion of the weeks for which payments were made. Businesses like this one and many others have not been asked to pay any of the wage subsidy back, even after many have gone on to make record profits.

The answer is simple, MSD needs to get businesses who have been overpaid the wage subsidy, or who have wrongly retained it, to pay it back.

The way MSD has handled the wage subsidy scheme repayments is in stark contrast to how it deals with beneficiaries who are overpaid. MSD will hound beneficiaries for as little as a $20 repayment and we want to know why businesses aren’t being treated in the same way.

We are concerned New Zealanders who just want to see MSD do the right thing. If you share our concern, now is the time to take action. Sign the petition and make your voice heard.

The Ministry of Social Development has previously circumvented recommendations made by the Auditor-General and Deloitte so this petition has to state precisely what action is required to get repayments.

Chief Executive

Ministry of Social Development

We, who sign the petition, request that you write to all recipients of the wage subsidy and request them to provide evidence that they complied with the eligibility criteria and their Declaration obligations including the following:

They used their cash reserves and engaged with their bank before applying.
They notified the MSD of any changes in their circumstances.
They verify that they had a 30% or 40% decline in revenue for each of the weeks they received the wage subsidy By providing copies of GST Returns for the six months after each wage subsidy payment was received and for the same period in the previous year.

Advise recipients that if they cannot provide the required evidence, they must repay part or all of the wage subsidy received.