In a bid to provide much-needed support to the 175,000 small and medium-sized Victorian businesses heavily impacted by the current public health restrictions, the State and Federal Governments have announced a jointly funded $2.34 billion support package.
Confirmed over the weekend, the business support payments cover a 4-week period ending on Thursday 30 September 2021. The payments, which we cover in more detail below, are being financially supported by both State and Federal Governments, with each contributing 50%. We note this is in lieu of a program similar to that of the NSW JobSaver Program.
So, what’s on the table for Victorian businesses?
Business Costs Assistance Program: Round 2 (July Extension)
Businesses throughout Victoria will receive automatic payments to cover ongoing costs such as wages, rent, utilities and insurance. Depending on the size of their payroll, eligible businesses will receive the following weekly payments:
- $2,800 a week for businesses with an annual payroll below $650,000
- $5,600 a week for businesses with an annual payroll between $650,000 and less than $3 million
- $8,400 a week for businesses with an annual payroll of $3 million to $10 million
Businesses will remain eligible while they are unable to operate due to public health restrictions.
Small Business COVID Hardship Fund
In recognition of the impact of the lockdown extension, the Small Business COVID Hardship Fund will receive a $448 million boost. The boost will increase the total grant amount available to small and medium-sized businesses from $14,000 to $20,000. For businesses that have already received a portion of this funding, there is no further action required as the top-up payments will automatically be paid into the nominated bank account.
It’s important to note that applications for this fund close on Friday 10 September 2021.
Licensed Hospitality Venue Fund
Licensed hospitality businesses that have previously been eligible to receive grants under the Licensed Hospitality Venue Fund 2021 or July Extension programs will receive automatic payments. Up to $289 million in funding will provide critical support to more than 9,300 premises that have been impacted by ongoing lockdowns.
Based on the capacity of their premises, eligible businesses will receive the following automatic payments:
- $5,000 for a capacity of up to 99 patrons (or where patron capacity is not specified)
- $10,000 for a capacity of 100 to 499 patrons
- $20,000 for a capacity of 500 or more patrons
Hospitality businesses will remain eligible while they are unable to operate due to public health restrictions.
Alpine Support Package
Resort businesses are also set to receive an automatic top-up payment of between $10,000 and $40,000 for the remainder of the season, with the amount depending on their location and staffing size.
So, finally some good news for many businesses that have been in limbo over the past weeks as lockdowns continue to be extended! We recognise that this is merely a bandaid for many businesses at this point in time, but we hope that it provides some relief.
If you have any queries relating to your unique situation, or would like further support in preparing your application for any of the packages above, get in contact with our specialised BlueRock accounting advisor for a free consultation.