Thursday, April 25, 2024

COVID business transition payments open

The Transition Payment available for affected businesses to support their move to the COVID-19 Protection Framework has opened for applications this morning.

“This payment is a recognition of the long period of time that these businesses especially in Auckland have spent with restrictions in place prior to shifting to the new framework. The payment is designed to support these firms through the next few weeks,” Finance Minister, Grant Roberson said.

The payment is at a higher base rate than the current RSP and will be $4,000 per business plus $400 per FTE up to a cap of 50 FTEs – a maximum payment of $24,000. Treasury has estimated the likely total cost of the payment to be between $350 and $490 million, he said.

The affected revenue period for the Transition Payment will be set between 3 October and 9 November, and must be compared to a typical week in the six weeks prior to 17 August.

“The one-off transition payment will be activated through the Resurgence Support Payment (RSP) system criteria, including a 30 percent revenue drop. We encourage eligible businesses to apply through Inland Revenue,” said Revenue Minister, David Parker.

“In addition, the Resurgence Support Payments numbers four to six remain also remain open for applications until 13 January 2022. This payment helps businesses with their fixed costs.

“So far the RSP has paid out $2.2 billion to businesses. Coupled with the Wage Subsidy Scheme, the Government has supported businesses and workers to the tune of over $6.9 billion since the Delta outbreak began.”

Support to be off work while isolating or to take leave while waiting for test results, currently provided by the Leave Support Scheme (LSS) and the Short Term Absence Payment, will remain available under all levels of the traffic light system.

However, the LSS will move to a weekly payment rather than fortnightly under the new system, reflecting the changed isolation period.

“We are moving away from the broad based economic supports provided under the Alert Level system. This is because at all levels of the new framework, most businesses will be able to operate at almost full capacity,” Mr Robertson said.

“We will monitor any economic impacts the new system may be having on businesses. I expect to report back to Cabinet in early 2022 on this and will make recommendations for support as necessary.”

Businesses can apply for the payment by logging into their MyIR account. Further information can be found on the Inland Revenue website.

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