More resurgence support payments coming for battling businesses
Friday, 10 September 2021
Business who are still suffering a drop in revenue because of the higher alert levels can apply for more resurgence support payments, the Finance Minister has announced.
Grant Robertson said on Friday that applications will open on September 17.
There will be another two payments after that, three weeks apart, as long as the conditions for the RSP still apply.
“The Government’s RSP was initially intended as a one-off payment to help businesses with their fixed costs, such as rent. Ministers have agreed to provide additional payments to recognise the effects of an extended period of alert level restrictions,” he said.
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“This will provide cashflow to businesses and support them in meeting their ongoing obligations as we come down alert levels and while Auckland remains at higher alert levels than the rest of the country.”
To qualify, businesses must experience at least a 30 per cent drop in revenue over seven days as a result of being at alert level 2 or higher.
For the second round of the payment, the drop must be over the seven days starting September 8.
The payment includes a core per business rate of $1500, plus $400 per employee, up to a total of 50 full-time equivalents, which is a maximum payment of $21,500.
Businesses with more than 50 FTEs can still apply but cannot get more than the maximum payment.
The scheme will be available until all of New Zealand returns to alert level 1 for one month.
Robertson said $1.7 billion had been paid out to date in wage subsidies, and more than $2.2 billion in wage subsidies and RSP combined.
“The economy is operating above pre-Covid levels thanks to our strong public health response. These principles will continue to guide our approach to supporting the economy, businesses and workers at this challenging time,” Robertson said.
Marisa Bidois, chief executive of the Restaurant Association, welcomed the announcement but said it was still not enough for many businesses.
“We still have operators in our largest city unable to trade at all and whilst at level 2 those outside of Auckland are back to trading, it is at drastically reduced capacity. These new rules are simply unworkable for most of our industry and more needs to be offered.
“What is clear is the need for the Government to acknowledge and fairly compensate those businesses that are bearing the majority of the cost associated with the current response to Covid-19.
“The resurgence payment is welcome and helpful but it still won’t be enough for many businesses. It has become clear that there should be a different level of government assistance for those businesses prevented by law from earning any income, to those who are able to work from home and keep revenue coming in.”
She said there should be targeted support for businesses that were locked out of normal trading at higher alert levels.
Terence Harpur, of the Takapuna Business Association, said the resurgence payment should be paid weekly until level 1.
Some businesses have complained about delays with their wage subsidies being approved but Inland Revenue encouraged people applying to ensure their information was accurate to avoid this.
An Inland Revenue spokesman said the delays were happening when data did not match up.
“The hold-ups that are occurring are not because of problems with the data matching/sharing systems or processes themselves. Everything is working as it should.
“The holdups occur only when data we hold on any given customer doesn’t match up with what that customer has submitted in their wage subsidy application. Where the data does match up, there is no problem and applications go through promptly. But where it does not match then time has to be taken to re-check and try to understand why the mismatch has occurred. If necessary, depending on the circumstances, the customer is contacted by either MSD or IR and asked for information.
“There have recently been instances where a customer has filled out the wrong waqe subsidy application form or provided their non-individual IRD number instead of their individual IRD number, and we have worked with MSD to provide information on the MSD website to help make sure customers get it right the first time.”
“There are a lot of applications coming in and IR is working hard with MSD to make sure that the communications around the whole process are as clear as they can be so that money is got to the businesses as quickly as possible.”
A spokeswoman for the Employers and Manufacturers Association said it had received queries about delays.
“There are some that aren’t being processed in the expected timeframe but often responses are related to people not quite having correctly filled in their details – everything from personal or trading name - and not being clear that this is a new application, not their one from last time.
“Once these issues have been highlighted we’re feeding that back to members and they’re able to amend, re-submit and get paid out pretty smartly.”