Resurgence Support Payment: 2021 RSP Guide for NZ Businesses

Covid-19 Resurgence Support Payment (RSP) is a government financial support to help businesses survive, especially during lockdowns with high alert levels. With New Zealand being on extended Alert Level 4 lockdown due to an increasing number of Covid-19 cases, it's no surprise that businesses are one of the most affected during this time.

Fortunately, Kiwis can now apply for a one-off government RSP payment to help them with the costs such as paying their employees, as well as rent and fixed costs.

Here’s an overview of what financial support your business can get based on alert level:

How to qualify for the Covid-19 Resurgence Support Payment (RSP) in 2021

• You must be an eligible employer
• You must be 18 years or older
• Your business must be registered and operating in New Zealand
• Your employees must be legally working in New Zealand
• Your business must have at least a 30% decline in revenue over 7 days due to the increase in alert levels
• Your business must be operating for at least 6 months
• Seasonal businesses must provide proof that there was a 30% revenue drop compared with a similar week the previous year
• The decline in revenue must be a result of the alert level change and not just COVID-19
• Your business must have taken the necessary steps to lessen the financial impact of the pandemic

Charities, pre-revenue businesses (like start-ups), not-for-profit organisations, and the self-employed may also be eligible for the RSP.

If qualified, you can get the following:

• The RSP payment includes a core business rate of $1500
• $400 per full-time employee (up to 50 FTEs)
• If you have more than 50 FTEs (full-time equivalent employees), you may still apply but will not be able to get more than the maximum payment which is $21,500.

Note: an employee is considered as an FTE if he or she is working 20 hours or more per week.

Changes to take note of

There was an update in the eligibility criteria for commonly owned groups (businesses that have the same owners). Now, some individual businesses or organisations that belong in a commonly owned group may now be qualified for RSP.

Note that when applying for RSP payment, the date the increase in the alert level started is when the seven-day period starts, where your business or organisation has experienced a drop in revenue.

RSP payment: Frequently asked questions

Do we have to pay for the RSP?

It's important to note that RSP is not a loan, which means you don’t need to pay it back. Just be sure that the payment will be used to help cover your business costs.

You may calculate how much you may be entitled to RSP if you meet the eligibility criteria here.

Can a business apply for other financial support schemes?

Yes, businesses can apply for the RSP at the same time as the wage subsidy scheme.

How do I apply for an RSP payment?

Just head to Inland Revenue's website. You need to have a myIR account to be able to apply. If you don't have one yet, you can register on their website. Once you have an account, just select "Apply for Resurgence Support'' under "I want to...'" and follow the necessary steps to complete your application. Make sure to put accurate information to avoid problems and delays in processing.

The scheme will be available until every part of New Zealand returns to Alert Level 1 for one month.

My application was approved. What happens next?

Approved applicants can expect to receive their payment in full within five working days, which will be sent into the bank account you provided during the application.

Note: Payments received under the Resurgence Support Payment are not subject to income tax.

Other Alert Level 4 financial support for businesses you can apply for:

• Wage Subsidy Scheme
• Leave Support Scheme
• Short-Term Absence Payments
• Small Business Cashflow (Loan) Scheme)
• Business Debt Hibernation

Recovering from financial losses can be challenging at a time like this, but aside from support from the government, there are other simple ways you can do to save money in the future, including making sure you have the best utility plans for your businesses.

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