Economic and Regional Development Minister Stuart Nash acknowledged the current Omicron outbreak and subsequent red traffic light setting are "having a severe impact" on the events sector.
Events have been offered more support, with the ETSP extended for the rest of the year. Touring events with more than 5000 attendees are now eligible for support, as well as events that need to cancel or postpone if the headline act has to self-isolate because of Covid-19.
"We know that under the current CPF red setting, large events cannot proceed. This is disappointing for event organisers, artists, and everyone associated with a large-scale event, including attendees.
"These changes will provide confidence to hundreds of events throughout 2022 and into next summer so organisers can continue to organise events despite the ongoing uncertainty that Covid-19 brings to our communities," Nash said.
Several high-profile New Zealand acts and events staff have been critical of the level of Government support given to the arts sector, and a petition was launched calling for more assistance.
The petition gained more than 29,000 signatures and called for support payments for workers and businesses unable to operate under the red setting.
The petition reads: "The move to the 'Red' setting in New Zealand's Covid-19 Protection Framework has left thousands of Kiwis who work in the live events and adjacent industries completely without work for the foreseeable future.
"After an already brutal 2021 for the music and live events industry especially, being left without work again in 2022 could see the decimation of many livelihoods."
Events with fewer than 200 attendees are eligible for support under the Arts and Culture Event Support Scheme.
On February 3 it was announced $121 million in additional money had been added to bolster the Covid Arts and Culture recovery programme.
As part of the programme, income support will be provided from the end of the year to early 2023 for artists, practitioners and production crew.
A one-off $5000 grant is available for self-employed or sole-trade practitioners with proof of loss of income or opportunity, with applications scheduled to open by the end of February.
Full details of the new criteria for the ETSP are available on MBIE's website and the changes take effect on April 4 this year.