05 March 2021

The Resurgence Support Payment (RSP) will be available for businesses affected by the change in COVID-19 alert levels that started on 28 February. Qualifying business and organisations can apply for this payment on Inland Revenue's website from 8 March. The RSP is also available for the change in alert levels that commenced on 14 February. Applications for the earlier period can be made now through to 22 March. Separate applications are required for each period.

Resurgence support payments apply when the Government increases COVID-19 alert levels to level 2 or higher. The payments aim to support viable and ongoing business affected by the change in alert levels. Business and organisations could be eligible if they experience a 30% drop in revenue over seven days after an alert level increase. The Inland Revenue Department specifies additional eligibility criteria on its website.

The drop in revenue is compared to a typical seven day period in the six weeks before the increase in the alert level. The decline must be related to the specific alert level changes and not COVID-19 in general. Companies must have been in business for at least six months to be eligible.

Each time the COVID-19 alert level is increased from level 1, the Government may decide to activate the RSP. It will generally be activated when the period of increased alert level is seven days or longer, but this is not guaranteed. Once the RSP has been activated it will be available nationally, even if the alert level isn't increased across the whole country. When the RSP is activated, 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 drop experienced by the applicant.

Generally, applications will open in myIR for eligible business and organisations seven days after the alert level increase. They will remain open for one month after the return to alert level 1. The payment is not a loan and does not have to be repaid.

It's possible that the Government could decide to activate the RSP multiple times if there are numerous alert level increases from level 1. Businesses and organisations can apply for the RSP each time it's activated, as long as they meet the eligibility criteria.

Talk to us or send us a message below to learn more about the Resurgence Support Payment.

Talk to us

Christopher Harding
Email: christopher.harding@bentleysnz.com
Phone: +64 9 600 3906

Stay in touch. Please do not hesitate to contact your client advisor.