As we cope with another lockdown in NZ, the Government are updating support measures for businesses and workers.
The Resurgence Support Payment assists small businesses to cover expenses such as wages and fixed costs, when there is a move to Alert Level 2 or higher for a week or more.
Applications for the alert level increase announced on 17 August are now open.
Applications will remain open for one month after all of New Zealand returns to alert level 1.
- A business or organisation must have experienced at least a 30% drop in revenue or a 30% decline in capital-raising ability over a 7-day period, due to the increased COVID-19 alert level.
- Revenue is compared to a typical 7 day period in the 6 weeks prior to the change in alert level.
Eligible businesses and organisations can apply to receive the lesser of:
- $1,500 plus $400 per full-time equivalent (FTE) employee, up to a maximum of 50 FTEs
- four times (4x) the actual revenue decline experienced by the applicant.
The payment is not a loan, so it does not need to be repaid.
It's possible that the Government could decide to activate the RSP multiple times if there are multiple alert level increases from level 1. Businesses and organisations can apply for the RSP each time the it's activated, as long as they meet the eligibility criteria.
How to Apply
You can apply for the Resurgence Support Payment via myIR. Alternatively, as a Tax Intermediary, we can apply on your behalf.
In order to apply, you must have:
- A NZBN
- Employee details
- Bank account
- Revenue details
- Details of your drop in revenue during the increased alert level period
- Details of your revenue during the comparison period.
Once approved, most applicants will receive their payment in full within 5 working days. It will be paid into the bank account supplied or chosen in the application. In some cases IRD will ask for more information before a decision is made to approve your application.
Unlike the wage subsidy, GST-registered businesses will return GST on payments received under the RSP. These businesses will be able to claim input tax deductions for expenditure funded by payments under the RSP.
The payment must be used to cover business expenses such as wages and fixed costs.
If you require support to apply for this payment or any of the other subsidies currently available, please get in touch with one of our team.