Covid-19 Resurgence Support Payments Update

Covid-19 Resurgence Support Payments Update

COVID-19 resurgence support payments – updated

The resurgence support payment (RSP) was introduced in February 2021 to help businesses directly affected when there is a move to alert level 2 or above for a week or more.

Applications are still open for the RSP for the alert level increase announced on 17 August 2021, so long as the conditions that trigger the RSP apply.

A business or organisation must have experienced at least a 30% drop in revenue over a 7-day period due to an alert level increase. The specified periods for each of the first, second, and third grants ended on 1 November 2021. Eligible businesses and organisations can apply to receive the lesser of:

  • $1,500 plus $400 per full-time equivalent (FTE) employees, up to a maximum of 50 FTEs
  • Four times (4x) the actual revenue decline experienced by the applicant.

The maximum amount of the payment is $21,500. A sole trader can receive a payment of up to $1,900.

Applications for the fourth round opened on 29 October 2021. After the fourth round, the RSP moves to fortnightly payments at double the current rate. For the payments starting on 12 November this will be $3,000 per business and $800 per FTE, up to 50 FTEs. This will make the maximum fortnightly payment $43,000. This means the RSP will be a weekly rather than three weekly payment (as it was up till the fourth round), but for smoother administration, it will be available in fortnightly instalments.

The enhanced RSP will be available until Auckland moves into the new Covid Protection Framework.

Eligibility

Businesses and organisations can apply for the RSP each time it is activated if they meet the criteria:

  • Applicants must have experienced a decrease in revenue or capital-raising ability of at least 30% due to the increase in alert level (if the applicant is part of a commonly owned group this 30% decrease also needs to be present across the group as a whole).
  • The scheme originally required businesses and organisations (including sole traders) to have been in business for at least 6 months, but from 9 September 2021, if you’ve been in business for at least 1 month before the alert level increase on 17 August 2021, you can apply for the payment.
  • The business or organisation must be considered viable and ongoing.
  • Charities and not-for-profit organisations may be entitled to the RSP provided they meet the other eligibility requirements.
  • State sector organisations are excluded from the RSP but can apply to the Minister of Finance for an exemption to apply for the scheme.
  • Income that is received passively (such as interest and dividends, and all forms of residential and commercial rent) is excluded from the measurement of revenue.
  • The business must be physically present in New Zealand.

There is provision to apply for businesses still in a start-up phase (‘pre-revenue businesses’), that have taken active steps towards being market-ready while not yet trading. Pre-revenue businesses may be eligible if they have experienced a minimum 30% reduction in their capital-raising ability over a 7-day period because of an increased alert level and if they meet the other RSP eligibility criteria. They need to keep records of how the raised alert level affected their ability to raise capital or begin trading.

Receiving any other Government COVID-19 support does not affect eligibility for the RSP.

Let us know if you’d like to know more about support available for your business.

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