June 20, 2023

How to apply for the Covid Support Payment (CSP)

COVID Support Payment (CSP)


Three fortnightly COVID-19 Support Payments (CSP) will be available. 

Applications for the first payment are open for the period beginning 16 February 2022 and ending 4 April 2022.

Applications for the second payment opened at 8am on 14 March 2022 for the period beginning 7 March 2022 and ending 4 April 2022.

Applications for the third payment will open at 8am on 28 March 2022 for the period beginning 21 March 2022 and ending 4 April 2022.

Please note that applications for all 3 CSPs will close on 5 May 2022.

The CSP is a payment to help support viable and ongoing businesses or organisations which have experienced a 40% or more drop in revenue as a result of 1 or more of the following COVID-19 circumstances:

  • the widespread presence of COVID-19 in the New Zealand community
  • the public health legislative measures taken in order to reduce the spread of COVID-19 in the New Zealand community
  • any business circumstances that are, or are reasonably likely to be, a consequence of the circumstances described above.

The COVID-19 circumstances include but are not limited to:

  • businesses not being able to operate to usual levels due to staff having to self-isolate
  • businesses impacted by New Zealand based supply chain disruptions
  • lower retail and recreation movements in a region (for example in a CBD) due to customers working from home or self-isolating.

They do not include circumstances where businesses, which are able to operate under the Red setting of the COVID Protection Framework, but have chosen to close temporarily without taking all reasonably practical steps to minimise their revenue losses. Additionally, they also do not include business circumstances that are a result of any border restrictions imposed or any overseas related impacts of COVID-19 such as global supply change issues, lack of overseas travellers or customers. 

Eligibility?

Applicants will not be eligible for the CSP where they:

  • have not taken all reasonably practical steps to minimise revenue losses
  • are a regulated business or service under the Covid Protection Framework and are not complying with the COVID-19 Vaccine Certificate requirements (where applicable). 
  • are a self-employed individual that has received, has an application pending for, or is going to apply for or receive in future, funding under the Cultural Sector Emergency Relief Fund: Grant for Self-Employed Individuals administered by Manatū Taonga - Ministry for Culture and Heritage (this only relates to the first CSP and not the second or third CSPs).

The affected revenue periods for each CSP payment are as follows.

  • First CSP – 16 February 2022 to 4 April 2022.
  • Second CSP – 7 March 2022 to 4 April 2022.
  • Third CSP – 21 March 2022 to 4 April 2022.

To work out a drop in revenue, you compare the revenue in an affected revenue period, as above, to the revenue earned in the comparison period.

The comparison period is a typical 7-day revenue period in the 6 weeks between 5 January 2022 and 15 February 2022. Alternatively, you can use a typical 7-day revenue period in the 6 weeks between 5 January 2021 and 15 February 2021.  

If you are a business with highly seasonal revenue, you may select a 7-day comparison period which is before 5 January 2022 and which may be from a past year, which reflects your typical revenue. 

How much?

The maximum size of the COVID-19 Support Payment (CSP) your business or organisation may be eligible to apply for, depends on the number of full-time equivalent employees (FTEs) you have, and your level of revenue. 

The CSP is calculated as $4,000 plus $400 per FTE (up to 50 FTE). The maximum payment is $24,000. Sole traders without any employees can receive a payment of up to $4,400. 

  • Employees regularly working up to 20 hours per week are considered part-time (0.6 FTE). 
  • Employees regularly working 20 hours or more per week are considered full-time (1.0 FTE). 

If a business or organisation does not have any employees, then they can apply for the base payment only (this does not apply to sole traders – as in, sole traders will be able to claim for themselves as an employee).  

Businesses with low revenue will receive the lesser of $4,400 or 8 times their actual decline in revenue. 

For example, if your business has 3 FTEs, you would, subject to the low revenue cap, be entitled to $5,200. However, if the same business had a decline in revenue of $200, their CSP amount would be limited to $1,600. 

How to apply

You can apply by logging into your MyIR portal. You need to have a myIR account to apply for the COVID - 19 Support Payment. If you do not already have a myIR account, you can create one.

If this is the first time you applying for a COVID-19 Support Payment then once you've logged in, select the 'I want to...' tab and 'Apply for COVID-19 support payment' under COVID-19 support. Follow the instructions on screen to complete your application, including selecting the payment (and) period you are applying for.

If you have previously applied for a COVID-19 Support Payment and were successful, then any further applications will need to be accessed in the new 'COVID-19 Support Payment' account panel you will be able to see when you log in to your myIR account. Once you have logged in, ensure you are viewing the 'summary' tab, locate the 'COVID-19 Support Payment' account panel and select the option 'Apply for the next COVID-19 Support Payment'. Follow the instructions on screen to complete your

You will need to supply the following information on your application:

  • New Zealand Business Number (NZBN). The NZBN is a globally unique identifier for each New Zealand business. Having an NZBN will speed up your interactions across Government.
  • Employee details. You’ll need to show whether they are a full or part-time employee. If names and IRD numbers are not shown on the application, you’ll need to enter each employee's name, IRD number, and whether they are a full or part-time employee. In addition, you’ll need to remove any casual or former employees that are not regularly working at the time the application is made. Add yourself as an employee if you’re a sole-trader.
  • Bank account. If the bank account number you want the CSP paid into is different to the one we hold, you need to provide the new number with your application. This must be a New Zealand bank account.
  • Revenue details. You'll need to provide revenue details for the 7-day affected revenue period and the 7-day comparison period.
  • Commonly owned group. If you are part of a commonly owned group*, you’ll need to provide the names and IRD numbers of the other members of the group and the group’s revenue details for the 7-day affected revenue period and the 7-day comparison period. *Generally, a commonly owned group (group) of businesses is one where each business has the same owners. It does not matter whether those owners have the same proportion of ownership in each business.  A business may also be treated as being in the group if it is part of a larger group of businesses.

Unlock your business potential: Book your free consultation today!

Are you ready to elevate your business? Our team at Tael is here to help. Take the first step towards your business growth by scheduling your complimentary initial consultation today.

Closeup of an IRD form with a calculator, a pen, and 3 small wooden blocks with the the letters TAX on each