Welcome back to level 4...
With this lockdown, there are two primary forms of support available.
Resurgence Support Payment ("RSP")
This is to cover overheads and other ongoing business expenses.
You're eligible for this if you have or expect a 30% reduction in revenue (not profit) over any 7-day period after the increase in Alert Level. When calculating, you compare these 7 days against a "regular" 7 days in the previous 6 weeks.
The payment amount is the lesser of:
- 4 x the reduction in turnover; or
- $1,500 plus $400 per full time employee.
So, using a basic example, say you're a sole trader with one employee, selling $1,000 per day. If you're not working for 7 days, your loss in revenue is $4,000. That is then compared against the $1,500 per business plus two lots of $400 per employee (2 employees). In this case they'd be paid $2,300.
There's a couple of fishhooks. You're only eligible for the payment if the reduction is due to the change in Alert Level. So, if you're on a downward trajectory then it's not open to you.
Other rules apply in situations where you are pre-revenue, if you're in a group of businesses, or if you're a start up. You also need to have been operating for six months, and be viable and ongoing (if you're going under you can't just grab the cash...).
Wage Subsidy Scheme
The WSS is available for businesses who have or expect a 40% reduction in turnover (note 30% for the RSP).
This is paid out as:
- $600 per week per full-time equivalent employee; or
- $359 per week per part-time employee.
Note that these amounts are slightly different from what was paid out in 2020.
The payments will be made in 2-week tranches.
Further information should be available on eligibility criteria later today. We expect that detail to be the same as for the RSP and for the 2020 Lockdown (you need to have a viable business, make efforts to obtain other funding, and to continue employing your people).
The Leave Support Scheme and Short-Team Absence Payment (who comes up with these names!!) are also around. These help pay wages for people who must self-isolate or stay home pending the results of a Covid test.
These are more applicable for business who (a) are continuing to operate as an essential service and (b) have staff members who can't go to work due to a test/self-isolation.
Making Your Application
Applications for the RSP are opening today (18 August). Applications for the WSS are expected to open on Friday (20 August).
Payments under both the RSP and WS should take 3 days to process from when you make your application.
You need to make these applications yourself, through myIR. Unfortunately they do not let us make them on your behalf. We're happy to help though if you get stuck in the process at all.
So, as always, reach out if we can help at all.
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