Resurgence Support Payments:
If you have been unable to open your business, or have been restricted by Level 3 and Level 2 COVID shutdowns, the government has provided the Resurgence Support Payment. This support payment is in the form of a grant and consists of a base payment of $1,500 per applicant, plus $400 per full time equivalent (FTE) staff member up to a cap of 50 FTEs. This means a business can receive a grant of up to $21,500.
To be eligible:
- The business must have suffered a decline in revenue of 30% or more. This is calculated by comparing the seven day period during the higher alert level with typical weekly revenue in the six weeks preceding the move from Level 1.
- A business cannot receive a payment more than four times the amount their revenue has declined by.
This is not a wage subsidy, but a payment direct to the business for whatever use it sees fit.
We note however that this payment is administered by Inland Revenue, so we expect to see more accountability than with the wages subsidy. A business will need to keep records of the drop in income, and expect to be asked to provide them.
Please contact our office if you need assistance with the calculation.
This resurgence support payment is available one time, each time restrictions are put in place.
As with the wages subsidy, the payments are taxable income, but not subject to GST.
Click here to find out about eligibility:
How to apply:
Applications can be made in myIR from Tuesday 23 February 2021.
If you do not have a myIR account, you can register for one today.
Register for myIR:
Information applicants will need to provide:
- NZBN number
- Employee details (only up to 50 FTE). If you’ve filed an employment information (EI) in the last 30 days leading up to the application, your employees’ name and IRD number will already be on the application. Otherwise, you’ll need to enter each employee’s name, IRD number, and whether they are full or part time employees.
- The bank account number the RSP is to be paid into if it is different to the one displayed. This must be a New Zealand bank account.
- Income details for the 7-day elevated alert level period and the 7-day comparison period.
Tax agents can apply for the RSP on behalf of their clients, if they confirm they have the authority to apply and hold a record of that authority.
It’s important to note that applicant details may be published once approved. This includes the applicant name, business or organisation name, payment amount and alert level escalation period.
COVID-19 Short-term Absence Payment:
The COVID-19 Short-term Absence Payment helps businesses to pay their employees who cannot work from home while they wait for a COVID-19 test result. This payment is also available to self-employed people.
The payment helps businesses keep paying employees who:
- cannot work from home, and
- need to stay at home while waiting on a COVID-19 test result.
A one-off payment of $350 is available for each employee. You can apply for it once for each eligible employee in any 30-day period. However, you can apply for it again if a health official or doctor tells them to get another test.
The COVID-19 Leave Support Scheme is still available for businesses to help pay employees who need to self-isolate for other reasons and cannot work from home.
COVID-19 Leave Support Scheme:
If your employees have been advised to self-isolate and they cannot work from home, you can apply for the COVID-19 Leave Support Scheme for them. You can also apply if you are self-employed or a sole trader.
The scheme means employees and self-employed people receive an income if they cannot work from home while they are self-isolating.
You can apply for the payment is your employees are not able to be at work, cannot work from home and have advised you that:
- they have COVID-19 and must self-isolate until a medical practitioner advises they can leave self-isolation
- they have been directed to self-isolate, or are the parent or caregiver of a dependant who has been directed to self-isolate, by a Medical Officer of Health (a Medical Officer of Health is defined in the Health Act 1956)
- they are identified as a close contact of someone who has COVID-19, and they have been advised to self-isolate by a medical practitioner or through the National Contact Tracing process
- they are the parent of caregiver of a dependant who has been advised to self-isolate by a medical practitioner or through the National Contact Tracing process, or
- they, or they have household members who are, most at risk of severe illness from COVID-19 (as defined in official Government public health guidance), and have been advised by a medical practitioner to self-isolate.
The COVID-19 Leave Support payment is paid as a lump sum, calculated to cover 2 weeks. You can re-apply after this time if your employees still qualify.
The criteria for getting the COVID-19 Leave Support Scheme changed at 9am on 9 February 2021. If you applied before this time, you need to meet the old criteria.
If your employees need to stay home while waiting on a COVID-19 test result and cannot work from home, the COVID-19 Short-term Absence Payment is available.
And remember the loan schemes:
80% government-backed bank loans are also available to businesses via the Business Finance Guarantee Scheme.
Meanwhile fully government-backed loans, administered by IRD, are available to businesses via the Small Business Cashflow Loan Scheme.
The criteria of these schemes have been broadened a number of times, so businesses that weren’t eligible when they are were launched may be eligible now.