Support for Businesses – late October edition

Additional Resurgence Support Payment available from 29 October

A fourth round of the resurgence support payment will open on 29 October. The criteria for this payment remain unchanged compared with before and is open to any business in New Zealand that meets the criteria as listed below:

• An actual 30% drop in revenue or a 30% decline in capital-raising ability over a 7-day period, compared with a 7-day period in the 6 weeks prior to 17 August 2021, due to the increased alert level on 17 August.
• Having been in business for at least a month prior to 17 August 2021.
• Being viable and ongoing

Applications currently remain open for all rounds of the resurgence support payment. Given the amounts a business can receive from these resurgence support payments ($1,500 plus $400 per full time equivalent employee up to a maximum of 50 employees per round), this can represent a healthy cash boost.

Changes to the Resurgence Support Payment

The government has announced changes to the resurgence support payment which will take effect after the fourth round of the resurgence support payment. These changes are:

• Rounds will commence on a fortnightly basis, instead of a three-weekly basis
• Per round payments will be $3,000 plus $800 per full time equivalent employee up to a maximum of 50 employees

The first payment under the new resurgence support payment will be on 12 November.

This is expected to continue in place until Auckland has moved to the new traffic light framework.

Wage Subsidy update

Applications for the current round of the wage subsidy remain open until 11:59pm today (28 October 2021), with applications for the next round of the wage subsidy expecting to open at 9am on 29 October 2021. The criteria and payment amounts remain the same.

Further changes pending

As New Zealand moves from the alert level system to the traffic light framework, we expect there will be changes to government support provided and will keep you informed of those changes.

Business Planning Grants available

One of the announcements which went under the radar on Friday was the announcement that Auckland businesses would be able to apply for advice and planning support through the established Regional Business Partners (RBP) programme.

The RBP Network consists of 14 regional growth agencies throughout the country, although this additional Covid support is aimed at businesses in Auckland.

Baker Tilly Staples Rodway can assist you through the provision of services which would be eligible for funding, such as budgeting and forecasting, governance, strategic planning and help with HR issues, and we are a registered provider.

Details of how to apply for the new support are not finalised, but you can register your interest here.

If you have any queries or require assistance with the wage subsidy or resurgence support payment, please contact your Baker Tilly Staples Rodway advisor.