This article was originally created for Hayes Knight (now Nexia Auckland).
Home > Updates > COVID Resurgence Support Payment
The RSP is available nationally even if the COVID alert level is not increased throughout all of New Zealand. Businesses can apply for the RSP each time the RSP is activated if they meet the eligibility criteria.
Following the alert level changes this week, the Government has activated the RSP. This means eligible businesses can submit their application, via myIR, from Tuesday 23rd February 2021, through until one month after the return to alert level 1.
The eligibility criteria for the RSP are as follows:
Eligible businesses will receive the lesser of:
Receiving any other Government COVID support (eg, cashflow loan or short-term absence payment) does not affect eligibility for the RSP.
The 30% revenue drop is calculated over a continuous 7-day period after the alert level was increased. i.e., Monday 15th February 2021 to Sunday 21st February 2021 (inclusive).
The 7-day affected revenue is then compared against a regular 7-day continuous period within the 6 weeks prior to the increased alert level. Both the affected revenue and the comparison must be calculated retrospectively; forecasts of what might happen cannot be used.
There is further guidance on the Inland Revenue website on calculating your drop in revenue including for seasonal businesses, groups of companies with common ownership and pre-revenue businesses.
The RSP must be used to cover business expenses such as wages and fixed costs. The RSP will not be subject to income tax and the business expenses the RSP covers are not deductible. For GST- registered businesses the RSP is subject to GST and must be included in your GST return.
Tax agents can apply for the RSP on behalf of their clients if they have authority to apply and hold a record of that authority.
Please contact your Hayes Knight advisor if you need assistance assessing your eligibility.