Resurgence Support Payment

Below are the recent updates with regards to resurgence support payment

Resurgence Support Payment – apply from 23 February 2021

From 23 February 2021, next Tuesday, eligible businesses will be able to apply through IRD for the Resurgence Support Payment where they have experienced a 30% drop in revenue over a 7-day period after the increased alert level, as well as meeting the other RSP eligibility criteria. This affected revenue period needs to be compared against a regular 7-day revenue period that starts and ends in the 6 weeks prior to the increased alert level.

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

Both the affected revenue period and the comparison period must be calculated retrospectively. The calculations must be based on what has happened, not a forecast of what might happen.

Resurgence Support Payment

The maximum size of the payment your business or organisation may be eligible for is dependent on the number of your full-time employees (FTEs) and your level of revenue.

The RSP is calculated as $1,500 plus $400 per FTE (up to 50 FTE). The maximum payment is $21,500. Sole traders can receive a payment of up to $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 considered 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 RSP payment would be limited to $2,000.

Pre-revenue businesses and organisations may be eligible if they:

• have experienced a minimum of 30% reduction in their capital-raising ability over a 7-day period because of an increased alert level, and
• meet the other RSP eligibility criteria.

A pre-revenue business or organisation is one that has taken active steps towards being market-ready but has not yet begun trading. They will need to keep records of how their ability to raise capital or begin trading was affected by the raised alert level.

You can find full information on the IR website here.

Other RSP Eligibility Criteria

• Businesses and organisations (including sole traders) must have been in business for at least 6 months.
• Applicants (including sole traders and trustees) must be at least 18 years old at the time of application.
• The business or organisation must be considered viable and ongoing.
• Businesses or organisations with common ownership (commonly owned groups) must apply as one group and the revenue drop test is measured across the group. If the group meets the revenue drop test, and the other eligibility criteria, it would be entitled to a single payment based on the number of employees in the whole group (max. 50 FTE).
• Charities and not-for-profit organisations may be entitled to the RSP, provided they meet the other eligibility requirements including that they are a viable, ongoing organisation.
• 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.

For full details and the application procedure read here.

If you have any questions, kindly feel free to get in touch with us.

Stay safe.