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COVID-19: Financial support for businesses update

COVID-19: Financial support for businesses update

Posted December 07, 2021
Business

Media Release: Business New Zealand

COVID-19 financial support for businesses is changing as New Zealand transitions into the COVID-19 Protection Framework (traffic light system).

No new rounds of the Wage Subsidy Scheme or Resurgence Support Payment will be opened under the new Framework.

The Short-Term Absence Payment, Leave Support Scheme and Small Business Cash Flow Loan Scheme will continue to be available.

A one-off transition payment will be available for eligible businesses as New Zealand moves into the new Framework.

The payment is particularly in recognition of the length of time Auckland, Waikato and Northland businesses spent under higher Alert Levels.

Applications open on 10 December 2021.
If your business had reduced income between 3 October and 9 November, you may be eligible for the payment.

How much
$4,000 per business plus $400 per full time employee (FTE) up to a cap of 50 FTEs.

How to apply
You can apply through the Resurgence Support Payment system in myIR. The eligibility criteria is the same as for Resurgence Support Payments.

Resurgence Support Payment
The Resurgence Support Payment (RSP) is a payment to help support viable and ongoing businesses or organisations due to a COVID-19 alert level increase to level 2 or higher. If your business or organisation is facing a reduction in revenue of at least 30% due to an alert level increase, you may be eligible for the RSP.

This payment is not a loan, so does not need to be repaid. The payment must be used to help cover business expenses such as wages and fixed costs.

Applications for three rounds of the RSP are open. Businesses and organisations can apply for each round of the RSP if they are eligible.

When
Revenue decline periods

The revenue decline periods for each payment are:

4th payment: starting 22 October 2021, ending the close of 2 December 2021

5th payment: starting 5 November 2021, ending the close of 2 December 2021

6th payment: starting 19 November 2021, ending the close of 2 December 2021.

Applications
Applications close the first working day six weeks after the end of the affected revenue period.

How much
4th payment: $1,500 per eligible business, plus $400 per full-time equivalent (FTE) employee, up to a maximum of 50 FTE.

5th and 6th payments: $3,000 per eligible business, plus $800 per FTE, up to a maximum of 50 FTE.

How to apply
You can apply and check if you’re eligible to apply on Inland Revenue’s website.