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 1
Applications for the alert level increase announced on 17 August will open at 8am on 24 August.
Disclaimer · General Advice Warning. The information contained on this document is general in nature and does not take into account your personal situation