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COVID-19 resurgence support payments - updated

September 16, 2021

Chris Lynch, CA, Managing Director


The resurgence support payment (RSP) was introduced in February 2021 to help businesses directly affected when there is a move to alert level 2 or above for a week or more. The Government can decide to activate the RSP multiple times if there are multiple alert level increases from alert level 1.


Applications are still open for the RSP for the alert level increase announced on 17 August 2021.


Businesses affected by higher COVID-19 alert levels will be able to apply for further resurgence support payments, applications opening on Friday, 17 September 2021. There will be another 2 payments after that, 3 weeks apart, so long as the conditions that trigger the RSP apply.


A business or organisation must have experienced at least a 30% drop in revenue or a 30% decline in capital-raising ability over a 7-day period due to an alert level increase. The total 7-day period must be within the increased alert level period. Eligible businesses and organisations can apply to receive the lesser of:

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

The maximum amount of the payment is $21,500.


Eligibility

Businesses and organisations can apply for the RSP each time it is activated if they meet the criteria:

  • Applicants must have experienced a decrease in revenue or capital-raising ability of at least 30% due to the increase in alert level (if the applicant is part of a commonly owned group this 30% decrease also needs to be present across the group as a whole).
  • Businesses and organisations (including sole traders) must have been in business for at least 6 months. New eligibility criteria were introduced and from 9 September 2021, if you've been in business for at least 1 month before the alert level increase on 17 August 2021, you can apply for the payment.
  • The business or organisation must be considered viable and ongoing.
  • Charities and not-for-profit organisations may be entitled to the RSP provided they meet the other eligibility requirements.
  • State sector organisations are excluded from the RSP but can apply to the Minister of Finance for an exemption to apply for the scheme.
  • Income that is received passively (such as interest and dividends, and all forms of residential and commercial rent) is excluded from the measurement of revenue.
  • The business must be physically present in New Zealand.

There is also provision to apply for businesses still in a start-up phase (‘pre-revenue businesses’), that have taken active steps towards being market-ready while not yet trading. Pre-revenue businesses may be eligible if they have experienced a minimum 30% reduction in their capital-raising ability over a 7-day period because of an increased alert level and if they meet the other RSP eligibility criteria. They need to keep records of how the raised alert level affected their ability to raise capital or begin trading.


Receiving any other Government COVID-19 support does not affect eligibility for the RSP.


Let us know if you’d like to know more about support available for your business.

Chris Lynch, CA, Managing Director

Lynch & Associates Limited

Email Chris Lynch

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