From today, the Auckland region is now at Alert Level 2, and the rest of New Zealand at Alert Level 1. On Monday 22 February 2021, these Alert Levels will be reviewed again.
This means that there is unlikely to be any Wage Subsidy support available for this lockdown unless we move back to Alert Level 3 in the coming weeks. The Wage Subsidy is only triggered if any part of New Zealand is at Alert Level 3 or 4 for seven days or more in total.
A new Resurgence Support Payment will be available from the end of this week.
Resurgence Support Payment
This is a new one-off cash injection being offered to offset the costs of a move to Alert Level 2 or above if any part of New Zealand is at Alert Level 2 or above for seven days or more.
To be eligible businesses must have suffered a drop in revenue of 30% or more in a seven-day period following the change to Alert Levels, compared to typical weekly revenue in the six weeks before the move from Alert Level 1.
Businesses will therefore need to wait until after Sunday 21 February 2021 to assess whether they meet this eligibility criteria.
The payment includes a $1,500 core business rate, and an additional $400 per employee up to a total of 50 full-time equivalent employees. This will be further capped by the amount by which the business’ revenue has declined (the cap is four times the value of this decline). This payment will be administered by the IRD.