3 November 2021
Resurgence Support Payments Increased
The amount and frequency of the Resurgence Support Payment is increasing from 12 November 2021 and will be available until Auckland moves into the new COVID-19 Protection Framework.
The Resurgence Support Payment (RSP) is a payment to help support viable and ongoing businesses or organisations due to a COVID-19 alert level increase to Level 2 or higher. If your business or organisation is facing a reduction in revenue due to an alert level increase, you may be eligible for the RSP.
Resurgence Support Payment applications for the alert level increase announced on 17 August 2021 are open.
Applications for four rounds of the RSP are open. Businesses and organisations can apply for each round of the RSP if they are eligible.
Payments to increase and become fortnightly
Current RSP payments are $1,500 per eligible business, plus $400 per full-time equivalent (FTE) employee, up to a maximum of 50 FTE, or $21,500 per week. These rates apply to current RSP payments.
For payments starting on 12 November 2021, the rates will increase to $3,000 per eligible business, plus $800 per FTE, up to a maximum of 50 FTE, or $43,000 per week.
From 12 November, the frequency of payments will also change, from every three weeks to fortnightly, until Auckland moves into the new COVID Protection Framework.
Applications and eligibility
Businesses and organisations will be eligible if they experience a 30% drop in revenue over a seven day period after an alert level increase and meet other eligibility criteria. This drop is compared to a typical seven-day period in the six weeks before the increase in alert level. Seasonal businesses should show a 30% revenue drop compared with a typical week in a prior year.
The decline in revenue must be a result of the specific alert level change, not just COVID-19 in general. You must have been in business for at least one month prior to the alert level change on 17 August 2021 to be eligible to apply.
Charities, not-for-profit organisations, the self-employed and pre-revenue businesses, such as start-ups may also be eligible.
This payment is not a loan, so does not need to be repaid. The payment must be used to help cover business expenses such as wages and fixed costs.
- For the first payment, the seven-day period of revenue decline must fall within 17 August 2021 and 1 November 2021. You can apply until 1 December 2021.
- For the second payment, the seven-day period of revenue decline must fall within 8 September 2021 and 1 November 2021. You can apply until 1 December 2021.
- For the third payment, the seven-day period of revenue decline must fall within 1 October and 1 November. You can apply until 1 December 2021.
- For the fourth payment, the revenue decline period must be a consecutive seven-days, in the period starting 22 October 2021 and ending immediately before all areas of New Zealand return to Alert Level 1. Applications will close on the first working day one month after a nationwide return to Alert Level 1.
There have been some recent changes to the eligibility criteria for commonly owned groups. A commonly owned group generally consists of businesses that have the same owners. Some individual businesses or organisations within a commonly owned group may now be eligible for RSP. You can find examples of commonly owned groups and more eligibility criteria for the RSP on the Inland Revenue website.
You can also calculate how much you may be entitled to and how to apply on Inland Revenue’s website.
If you don’t meet the criteria for RSP but do have cash flow problems, Inland Revenue can help. Visit their Manage my tax page for more information.
Published by Business.govt.nz – 3 November 2021