Wellington Lockdown – Inland Revenue announces further support payments

The announcement of a further lockdown in the Capital has resulted means a further resurgence support payment (“RSP”) is available for affected businesses.  The RSP assists businesses and organisations to remain viable where the Covid-19 Alert Level increases to level 2 or higher.

Inland Revenue has advised that applications for the RSP for Wellington, Wairarapa and Kapiti Coast to the north of Otaki opened in myIR at 8 am on Thursday, 1 July 2021. Applications will remain open for one month after the return to alert level 1. The Wellington region returned to alert level 1 at 11.59 pm on 29 June 2021 thus applications will remain open until 29 July 2021.

To be eligible for the RSP, 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 an alert level increase.  Eligible businesses and organisations can apply to receive the lesser of:

  •  $1,500 plus $400 per full-time equivalent (FTE) employees, up to a maximum of 50 FTEs;
  •  Four times (4x) the actual revenue decline experienced by the applicant.

Such RSP applications can occur multiple times if there are multiple provided alert level raises.  Thus businesses and organisatins can apply for several payments provided:

  • Applicants experience a decrease in revenue or capital-raising ability of at least 30% due to the increase in alert level;
  • Businesses and organisations (including sole traders) must have been in business for at least 6 months;
  • The business or organisation must be considered viable and ongoing;
  • Income that is received passively (such as interest and dividends, and all forms of residential and commercial rent) is excluded from the measurement of revenue.
  • The business must be physically present in New Zealand.

Charities and not-for-profit organisations may be entitled to the RSP provided they meet the other eligibility requirements.

If your business or organisation operates in these areas and you require our assistance with the applications please reach out.

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