Additional $2.34 Billion Announced in Support for Victorian Businesses

Victorian businesses have been given significant aid in the form of a $2.34 billion support package, jointly funded by both State and Federal governments until the state reaches its target of a 70% vaccination rate.

Approximately 175,000 Victorian businesses will be able to receive support, backdated from the announcement of the package on the 4 September, until 30 September, allowing businesses and business owners to remain indoors and prevent the transmission of the virus until vaccination targets are met.

The breakdown of funding largely continues existing measures, with little minimal action required on the part of businesses already receiving support.

Here’s what’s available for your business: 

Business Costs Assistance Program

An additional $1.6 billion in funding will be allocated to support 132,000 businesses in a number of sectors. These businesses include those who were eligible and had received support from the Business Costs Assistance Program Round Two or July Extension.

Businesses throughout Victoria will receive automatic payments to cover ongoing costs such as wages, rent, utilities and insurance. Eligible businesses will receive the following payments to their nominated business account and amounts will vary depending on the size of their payroll. Businesses may receive:

• $2800 a week for businesses with an annual payroll below $650,000.
• $5600 a week for businesses with an annual payroll between $650,000 and less than $3 million.
• $8400 for businesses with an annual payroll of $3 million to $10 million.

Small Business COVID Hardship Fund

The Small Business COVID Hardship fund will be boosted with $448 million in response to the extension of Victorian lockdowns, to reach a total of $700 million in support. The maximum amount available for small and medium-sized businesses has been increased from $14,000 to $20,000, providing extensive support for up to 35,000 businesses.

16,000 businesses have already received support and no action is required on the part of these businesses, as funds will be paid into their nominated bank account.

Businesses still seeking to apply for the Small Business COVID Hardship Fund should be aware that applications will close on 10 September.

Licensed Hospitality Venue Fund 2021

An additional boost of $289 million in funding will provide support to over 9,300 hospitality venues impacted by lockdown. Licensed hospitality businesses that have previously been eligible to receive support under the Licensed Hospitality Venue Fund 2021 or July extension program will receive automatic payments to acknowledge the impact of recurring lockdowns.

Based on venue capacity, grants will be provided to hospitality venues at the rate of:

• $5000 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.

For further information regarding support for Victorian Businesses, visit the Business Victoria website, or if you have any questions related to your eligibility regarding support, please get in contact with a professional advisor at Morrows today.