Eligibility for the Resurgence Support Payment

As we cope with another lockdown in New Zealand, the Government are updating support measures for businesses and workers.

The Resurgence Support Payment assists small businesses to cover expenses such as wages and fixed costs, when there is a move to Alert Level 2 or higher for a week or more.

Applications for the alert level increase announced on 17 August 2021 opened on 24 August 2021.

Eligibility criteria

• 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 the increased COVID-19 alert level.
• Revenue is compared to a typical 7 day period in the 6 weeks prior to the change in alert level.
• The payment is non-taxable income, but this means the expenses it is used for are also non-deductible for tax purposes.
• The payment DOES include GST.
• Businesses must have been in business for at least 6 months.
• The business or organisation must be considered viable and ongoing, this may include having a current business plan.
• You must keep a record of your calculations used to determine eligibility.

Eligible businesses and organisations can apply to receive the lesser of:

• $1,500 plus $400 per full-time equivalent (FTE) employee, up to a maximum of 50 FTEs.
• four times (4x) the actual revenue decline experienced by the applicant.
• The payment is not a loan, so it does not need to be repaid.

For more information on the resurgence support payment and calculate the amount you would be entitled to, visit the Inland Revenue page.