Circuit Breaker Business Support Package – Are You Eligible?

As the Victorian Government announces a further $143 million package to support eligible businesses – it has provided much confusion as to who is eligible and what’s on offer. Firstly, the package is expected to help more than 50,000 Victorian businesses who have incurred costs during the snap five-day lockdown. The package has initiatives targeted at businesses (both small and micro), each containing its own benefits and eligibility criteria.

Provided below is the breakdown of the four initiatives introduced as part of the package and what it may mean to your business:

Initiative One: Businesses Costs Assistance Program

This program provides assistance to eligible sectors that have incurred direct costs as a result of the circuit breaker action. Examples of costs include the loss of perishable goods, cancellation fees and charges.

Eligible businesses include those with a payroll of up to $3 million as well as soles traders.

One-off grants of $2,000 are available and are targeting the following industries:

• Hospitality,
• Food wholesaling,
• Tourism
• Events
• Selected retail industries

Registration for the grant is currently open via the Business Victoria website. Applications close Tuesday, 16^th March.

Initiative Two: Licensed Hospitality Venue Fund – Circuit breaker Action Payment

Businesses who previously received a grant through the Licensed Hospitality Venue Fund will now receive a further one-off payment of $3,000. However, recipients of this payment will not be eligible to receive a grant from the Businesses Costs Assistance Program. This is an automatic payment with no application and therefore, those eligible will be contacted directly.

Initiative Three: Victorian Accommodation Support Program

An expansion of the Regional Victorian Support program has also been provided to include tourist accommodation premises in Greater Melbourne.

Tiered grants of support will be offered to businesses who can demonstrate booking cancellations between Friday, 12^th February and Wednesday, 17^th February 2021:

• Tier 1: Funding of $2,250 (excluding GST) per Accommodation Premises experiencing 10 or fewer cancelled nights.
• Tier 2: Funding of $4,500 (excluding GST) per Accommodation Premises with 11 or more cancelled nights.

Registration for the grant is currently open via the Business Victoria website. Applications close Tuesday, 16^th March.

Initiative Four: Travel Voucher Schemes

In addition to the above, two travel voucher schemes have been introduced to encourage Victorians to travel across the state and promote the recovery of the Victorian Tourism industry.

The schemes include:

• Introduction of 40,000, $200 vouchers to support travel in Greater Melbourne (launching soon)
• Expansion of the Regional Travel Voucher Scheme with a further $10 million to be offered as a new Melbourne Travel Voucher Scheme.

To discuss your eligibility and how the support package can help you and your business, get in touch with your Morrows advisor today.