Our Articles

Resurgence Support Payment (RSP)

February 18, 2021

So we’re back at Level 2 – however at this stage we have made the call for our team to remain working from home until Monday the 22nd of February. They are still available on their respective DDi’s or simply call our main line. We will be taking physical meetings either in our offices if need be or at an alternative location of your choice. If this is required please liaise with your account manager accordingly.

By way of update with regards the Resurgence Support Payment (RSP) as mentioned in previous bulletins. This legislation is still progressing through Parliament but in essence has been passed.

The RSP is a one off payment for a business or organisation that has experienced at least a 30% drop in revenue or 30% decline in capital-raising ability over a 7-day period at the raised alert level compared with a typical 7-day revenue period in the 6 weeks prior to the increase from alert level 1.

Applications can be made in myIR from Tuesday the 23rd of February. This is due to the criteria being that the RSP applies where the alert level has increased to Level 2 or higher. The application if from 7 days after the alert level increase. Since we have been at Level 3 since Monday then hence the 7 days would make the first application period apply from the 23rd.

The general eligibility criteria are that the businesses must have experienced a revenue decrease of at least 30% due to the increase in alert level over a 7-day period after the increased alert level – to be compared against a regular 7-day period that starts and ends in the 6 weeks prior to the increased alert level.

The amounts you may be eligible for is dependent on the number of FTEs and your level of revenue.

The RSP is calculated as $1,500 plus $400 per FTE (up to 50 FTE). The maximum payment is $21,500. Sole traders can receive a payment of up to $1,900.

Businesses with low revenue will have their payment capped at four times (4x) the amount their revenue has dropped over the 7-day period. For example, if the business has 3 FTE employees, they would be entitled to $2,700. However, if their revenue drop was $500, the RSP payment would be limited to $2,000.

Commonly owned companies must calculate the revenue drop for the group as a whole.

The RSP is subject to GST.

There is a lot of detail in amongst this scheme which is worth discussing with us before considering to apply and we are available to assist with the application. Please contact us should you wish to discuss further.

For more information please click through to the RSP section at the IRD click here: