COVID-19 Update - Financial Support for Businesses

Resurgence Support Payment

Following the decision that Auckland will remain at a heightened alert level until at least Monday 22 February, the government has announced that the Covid Resurgence Support Payment will be made available. Viable and ongoing businesses that have had a 30% reduction in revenue over a seven-day period following the alert level increase will be eligible for the lesser of:

• a $1500 payment per business plus $400 per full-time equivalent employee, up to a total of 50 employees; or
• four times the actual revenue drop experienced by the applicant.

The RSP will be available nationally, even for businesses who haven’t been in regions subject to heighted alert levels.

Unlike the Wage Subsidy, this is a payment to help business cover all business expenses, such as wages and fixed costs. Eligibility for the RSP is not affected by receiving any other COVID-19 government support.

Legislation is being passed under urgency to activate the Resurgence Support Payment. It is expected that applications will be able to be made through www.ird.govt.nz (myIR) from 23 February 2021.

Support for Absent Employees

A reminder that on 09 February 2021, a Covid Short-term Absence Payment was introduced. This is a one-off payment of $350 per worker to businesses whose employees cannot work from home, and need to stay away from work while awaiting a COVID-19 test result.  If your employee returns a positive COVID-19 test, you can also apply for the Covid Leave Support Scheme to help pay their wages during their self-isolation. Applications can be made online at www.workandincome.govt.nz.

Our commercial and employment law teams can assist with resolving issues facing your business during COVID-19, including your employment law obligations, leave and redundancy queries, commercial lease disputes and insolvency / debt recovery issues. Contact us to discuss how we can assist you.