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COVID-19 Resurgence Support Payment

26 February 2021

There is support available for businesses affected by the recent COVID-19 lockdown called the COVID-19 Resurgence Support Payment.

The purpose of this payment is to ensure businesses remain viable, keep people employed, and recognise the fixed costs associated with escalating alert levels.

ELIGIBILITY CRITERIA FOR THE RESURGENCE SUPPORT PAYMENT

Applicants must have experienced a revenue decrease of at least 30% due to the increase in alert level.

Businesses will need to measure their revenue over a continuous 7-day period where the first day is on or after the change in alert levels i.e., 15 February 2021.

This affected revenue period then needs to be compared against a regular continuous 7- day period in the 6 weeks prior to the increased alert level.

AMOUNT YOU MAY BE ELIGIBLE FOR
The Resurgence Support Payment is calculated as $1,500 plus $400 per full time employee (FTE) up to 50 FTE. The maximum payment is $21,500.00. Sole traders can receive a payment of $1,900.

  • Employees working up to 20 hours per week are considered part time (0.6 FTE)
  • Employees working 20 hours or more per week are conserved full time (1.0 FTE)

Businesses with low revenue will have their payment capped at four times (4x) the amount their revenue has dropped over the 7-day period. For example, if the business has 3 FTE employees, they would be entitled to $2,700. However, if their revenue drop was $500, the Resurgence Support Payment would be limited to $2,000.

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

The Resurgence Support Payment is not a wage subsidy. It does not have to be passed onto any employees as was the requirement under the previous Wage Subsidy Scheme. The Resurgence Support Payment must be used to cover business expenses such as wages and fixed costs.

Applications can be made through myIR from Tuesday, 23 February 2021.

Please get in touch with us on 09 623 7770 for more information and support.

Alternatively, more information can be found on the IRD website:

COVID-19 and tax matters - guidance for businesses and tax agents

COVID-19 Resurgence Support Payment