On 13 September 2020, the Victorian Government announced additional funding for businesses under the COVID-19 business survival support package. This $3 billion COVID-19 support package primarily targets industries worst-hit by the ongoing restrictions, with the aim to keep as many people employed as possible.
The $3 billion in funding will include cash grants, tax relief and cashflow support. With Victoria experiencing a second wave of COVID-19, this support package is the largest in the state’s history and comes as the State of Emergency and State of Disaster declarations were extended until 11 October.
What does the Victorian Business Survival and Adaptation Package include?
There are three components to the Victorian Business Survival and Adaptation Package:
- The Business Survival Package ($1.08 billion)
- The Business Adaptation Package ($44.2 million)
- Changes to waivers and deferrals ($1.8 billion)
1. The Business Survival Package
Under the Business Survival Package, roughly $1.1 billion in cash grants will be provided to small and medium size businesses that have been largely affected by lockdown and restrictions.
The Business Survival Package is in place to help Australian businesses. These benefits are categorised based on a business’ annual payroll and are aimed towards specific industries including:
Small and medium size businesses
Small to medium size businesses with a payroll of up to $10 million will be provided with a $20,000 grant, supported by the additional $822 million funding to the third round of the Business Support Fund.
The third round of funding for Business Support Grants
The Victorian Government has announced additional funding for small and medium size businesses who have been worst-hit by the ongoing restrictions. The ‘How We Work’ Roadmap to Reopening acknowledges that many industries will still be unable to operate or be heavily restricted for quite some time to come. The third round of funding is in place to help businesses in impacted industries survive the extended period of heavy restrictions.
Upon fulfilling the criteria, an eligible business will receive:
- $10,000 for businesses with an annual payroll under than $650,000
- $15,000 for businesses with an annual payroll between $650,000 and $3 million
- $20,000 for businesses with an annual payroll between $3 million and $10 million.
A full list of the eligibility criteria for a grant will be published when applications open on Friday, 18 September. You can view more information on the third round of funding for business support grants here.
Licensed hospitality venues
Licensed hospitality venues will be provided with grants of up to $30,000. These venues include:
- Licensed pubs
- Reception centres, based on their venue capacity and location.
Business Chambers and Trader Groups
Business Chambers and Trader Groups will be provided with grants to boost metropolitan and regional business chambers and trader groups.
Alpine businesses will receive grants of up to $20,000. This is to help those in the industry pay the service charge to the Alpine Resort Management Boards.
2. Business Adaptation Package
As Victoria recovers from the second wave of COVID-19, the Government has offered a package to support businesses as they begin to reopen worth almost $45 million. This support includes additional funding, tools and resources for Victorians as restrictions begin to ease. The Business Adaptation package includes:
- A program for sole traders and small businesses to help establish and grow their digital presence and capability.
- A support package to help Victorian exporters find new trade channels and have their products in a great number of markets.
- Investment for the expansion of the ‘Click for Vic’ campaign. The additional investment aims to encourage more Victorians to shop local and support small and medium size businesses.
3. Changes to waivers and deferrals
In addition to the Business Survival and Adaptation Packages, the Victorian Government has also announced changes to waivers and deferrals. This announcement brings $1.8 billion in tax and cashflow support to Victorian businesses including:
- $1.7 billion in payroll tax deferrals for the full 2020-21 financial year
- $41 million to bring forward the 50% stamp duty discount for commercial and industrial property for all of regional Victoria.
- $33 million to defer the planned increase in the landfill levy for six months.
- $30 million to waive 25% of the Congestion Levy this year, with the outstanding balance deferred.
- $27 million in liquor license fee waivers for 2021.
- $6 million to waive Vacant Residential Land Tax for vacancies in 2020.
You can view the official announcement of the Business Survival and Adaptation Package on the Victoria Government website here.
Who is eligible for the Business Survival and Adaptation Package?
The Victorian Government has not yet released the eligibility criteria for applicants. This information will be released Friday, 18 September when applications open.
To be the first to be notified about the eligibility criteria, sign up to the Victorian Government mailing list here.
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