The Minister of Finance has announced that eligible businesses and organisations can now apply for two payments of the Resurgence Support Payment (RSP) for the Alert Level increase that started on 17 August:
- August 2021 RSP payment #1: Applications open from 8:00am Tuesday 24 August
- August 2021 RSP payment #2: Applications open from 8:00am Friday 17 September
The RSP is a payment to support viable businesses with their financial commitments if they have been impacted by the change in Alert Levels and meet the eligibility criteria.
Businesses and organisations are able to apply for the second payment in addition to the first payment. Both RSPs will remain open for one month after all of New Zealand returns to Alert Level 1.
Eligible businesses can apply for the RSP as well as the Government’s COVID-19 Wage Subsidy Scheme.
How much can I claim?
Eligible applicants can receive the lesser of the following:
- $1,500, plus $400 per full time equivalent (FTE), up to 50 FTEs, or
- 4x the actual revenue decline experienced by the applicant.
An FTE is defined as an employee that ordinarily works 20 hours or more per week.
The maximum payment is $21,500. Sole traders can receive up to $1,900.
How do I apply?
The RSP is administered by Inland Revenue (Te Tari Taake). Eligible businesses can apply here.
Am I eligible?
Applicants must have experienced a decrease in revenue or capital-raising ability of at least 30% over a continuous 7-day period (“affected period”), due to the increase in Alert Level. Applicants will need to document and be prepared to prove that they have suffered this decrease when compared with a typical 7-day continuous period in the 6 weeks prior to the increase in Alert Level 1 (“comparison period”). The affected period for RSP #2 begins on 8 September 2021. It is important that applicants ensure the eligibility criteria specific to the second payment are met before applying. Businesses that were eligible for RSP #1, might not be eligible for RSP #2.
A range of additional important eligibility criteria apply. For further details, please visit our BDO COVID-19 Business Support Hub.
The Minister of Finance has indicated that two further RSP payments will be made available, three weeks apart, so long as the conditions that trigger the RSP apply.
As is the case with the Wage Subsidy Scheme, it is essential that applicants take their time to ensure that they meet the eligibility requirements and document this carefully. Every business or organisation that receives the RSP will be publicly named in a register.
Please contact your BDO adviser for help with this process and related RSP enquiries.