Resurgence Payment update November

As Auckland remains in level 3, our staff are still working remotely from home, so email remains the best option to get in contact, however, our office number is still functional if you have any questions (09 869 2200).

If you are yet to get your Annuals information into us, we would ideally like to receive the files electronically, we are unable to accept files through 3rd parties intermediaries such as DropBox and Google Docs for security reasons, so directly via email is preferred (you can ZIP and compress the file).

If you only have hard copies of your records, we can arrange a contactless drop off at a designated time. These are by appointment only so please contact info@taelsolutions.co.nz to arrange.

Please do not send your records via Courier as the office is closed and there is no one to sign and accept the parcels.

COVID-19 Resurgence Support Payment

A 5th payment under the RSP scheme is now available to eligible businesses and organisations which experience a 30% decline in revenue due to the increased alert levels, in a consecutive 7 day period in the period starting 5 November 2021 and ending immediately before all areas of New Zealand return to alert level 1 or are at Orange or Green under the COVID-19 Protection Framework. Applications will close on the first working day that is one month after the end of the affected revenue period.

For the 5th payment, eligible businesses and organisations can apply to receive the lesser of:

• $3,000 plus $800 per full-time equivalent (FTE) employee, up to a maximum of 50 FTEs
• eight times (8x) the actual revenue decline experienced by the applicant.

Applications for all 5 Resurgence Support Payments (RSPs) are now open.

Applications for the first 3 close on 1 December.

The receipt of an RSP is excluded income (to the extent that the RSP is used for business expenditure). You will not be entitled to an income tax deduction for expenditure funded by the RSP.

GST-registered businesses will return GST on payments received under the RSP. These businesses will be able to claim input tax deductions for expenditure funded by payments under the RSP.

If you do not correctly use the RSP to fund such business expenditure, you will then be required under the RSP Terms and Conditions to repay the RSP (and interest) to Inland Revenue.

Wage Subsidy Scheme

The Wage Subsidy is paid in two-week periods. Since the alert level change on 17 August 2021, seven rounds of the scheme have been announced.

Applications for the first six rounds have now closed.

Applications for Wage Subsidy August 2021 #7 are open from 9am on 12 November until 11.59pm on 25 November. Applications for Wage Subsidy August 2021 #6 closed at 11.59pm on 11 November.

Businesses and self-employed people must expect a 40% drop in revenue to be eligible to receive the wage subsidy.

The wage subsidy is paid in a 2 week lump sum. You can get:

• $600 per week for each full-time employee
• $359 per week for each part-time employee

You cannot get the Wage Subsidy August 2021, Leave Support Scheme and Short-Term Absence Payment for the same employee at the same time.

The Wage Subsidy will continue to be available to businesses anywhere in New Zealand while any part of the country is in Alert Levels 3 or 4.

Important note

Inland Revenue have identified that many businesses have not applied for the resurgence support payment because the business owners wrongly assumed they had to choose either the wage subsidy or the resurgence support payment.

We emphasise that if you meet the necessary criteria, your business can apply for both the resurgence support payment and the wage subsidy. These payments are designed to help businesses in different ways, with the resurgence support to assist in covering day to day costs such as rent and utilities, while the wage subsidy is designed to assist in the payment of employees.

If your business has not yet applied for government support and meets the necessary criteria, then we urge you to apply for assistance. The government is wanting to ensure as many viable businesses are kept going as possible and is providing the support to do its part.

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