Delta Lockdown 2021: Making sense of the COVID-19 Resurgence Support Payment

We know this is a very stressful time and that everyone will want to act as quickly as possible.COVID-19 Resurgence Support Payment - What is it for?The purpose of this payment is to ensure businesses remain viable, keep people employed, and recognise the fixed costs associated with escalating alert levels. Basically, this is a subsidy to keep the business going, whereas the COVID-19 Wage Subsidy is meant only for wages.This is a one-off payment, however businesses can apply for the Resurgence Support Payment each time the scheme is reopened, provided they meet the eligibility criteria.Is this a loan?No. The payment is not a loan and does not need to be repaid.Can I get the Resurgence Support Payment if I have claimed the COVID-19 Wage Subsidy?Yes. You can also still receive the Resurgence Support Payment even if you are receiving other COVID-19 payments.What is the main criteria?The payment will be made to businesses that:

• incur a 30% or more decline in revenue (or a 30% decline in capital raising ability for pre-revenue businesses),
• over a seven-day period,
• when compared with a typical seven-day period in the six weeks prior to the alert level change, and the revenue decline must be a direct result of an alert level escalation. It cannot be the general impacts of COVID-19 (often described in earlier schemes); and
• revenue specifically excludes passive income, such as interest and dividends, and all forms of residential and commercial rent.

There are special rules relating to seasonal businesses and pre-revenue businesses, as well as detailed explanations about how to determine what revenue should include (depending on how your business operates).Any other criteria?

• You must have been in business for six months to be eligible.
• Your business must be considered viable and ongoing.
• The business (including commonly owned groups) must have 50 or fewer FTEs (Full-Time Equivalent Employees)
• Charities, not-for-profit organisations, self-employed persons, and pre-revenue businesses (like start-ups) may also be eligible for the scheme, provided they meet the other eligibility criteria.
• State sector organisations are specifically excluded from the scheme. These entities can apply to the Minister of Finance for an exemption.

What can I receive?The level of support available through the Resurgence Support Payment is the lesser of:

• $1500 core business rate plus $400 per FTE Employee (Full-Time Equivalent Employee), up to a maximum of 50 FTEs, OR
• Four times the actual revenue drop experienced.

What is a full-time employee?Employees working up to 20 hours per week are considered part-time (0.6 FTE).Employees working 20 hours or more per week are considered full-time (1.0 FTE).Show me the money!Payments will be administered by Inland Revenue. Applications open seven days after the alert level increase and will remain open for one month after a nationwide return to alert level 1Applications for the alert level increase announced on 17 August will open at 8am on 24 August.Apply for the Resurgence Support Payment (RSP) (ird.govt.nz)Disclaimer · General Advice Warning. The information contained on this document is general in nature and does not take into account your personal situation