The Victorian Government is investing $3 billion into the Victorian economy to help businesses impacted by the ongoing restrictions and impact of COVID.

This $3 billion support package will be provided in the form of cash grants, tax relief and cashflow support and will be targeted to business who have been most affected by COVID.

Refer to below of a detailed list of support being provided by Business Victoria.

Business Support

  1. Cash Grant – Small and medium sized businesses:

A further cash grant is available to small businesses for $10,000 or $20,000 depending on the business ‘annual payroll’.

A full list of the eligibility criteria for this grant will be published when applications open on 18 September 2020 but initial criteria includes:

  • operate a business located within Victoria; and
  • participate in the Commonwealth Government’s JobKeeper Payment scheme; and
  • employ people and be registered with WorkSafe; and
  • have had an annual payroll of less than $10 million in 2019-20; and
  • be registered for Goods and Services Tax (GST); and
  • hold an Australian Business Number (ABN); and
  • be registered with the responsible Federal or State regulator

An eligible business will receive:

  • $10,000 if its annual payroll is less than $650,000
  • $15,000 if its annual payroll is between $650,000 and $3 million
  • $20,000 if its payroll is between $3 million and $10 million.

https://www.business.vic.gov.au/support-for-your-business/grants-and-assistance/business-survival-and-adaptation-package/business-support-fund-3

  1. Licensed Hospitality Business Grant:

This grant is targeted towards the food service business that have been affected by the Stage 3 and Stage 4 ‘Stay at Home’ restrictions.

Eligible businesses will be provided with a one-off grant of $25,000.

To be eligible to receive this grant, the business must meet all the following:

  • Operate a business with premises located in Victoria; and
  • Operate a restaurant, cafe, pub, bar, club, reception centre, coffee and dessert outlet or takeaway food venue that serves patrons and hold a Class 2 or 3 Service Sector – Certificate of Registration under the Food Act 1984 (Vic); and
  • Employ staff and have an annual payroll of $3 million and up to $10 million in 2019-20; and
  • Be registered for Goods and Services Tax (GST) on 30 June 2020; and
  • Hold an Australian Business Number (ABN) and have held that ABN at 30 June 2020; and
  • Be registered with the responsible Federal or State regulator

Businesses are not eligible for funding through this program where they have received funding under the Victorian Live Music Venues Program and/or Business Support Fund – Expansion program.

Where the eligible business operations more than one premises, the business may be eligible for an additional grant of $5,000 for each additional premise with the Melbourne Metropolitan LGA’s and Mitchell Shire, capped at a total of $20,000.

A CBD Business (postcodes 3000, 3005, 3006 and 3008) is also be eligible for an additional $20,000 grant from the special program for CPD businesses.

https://www.business.vic.gov.au/support-for-your-business/grants-and-assistance/business-support-package/hospitality-business-grant-program/hospitality-business-grant-program-faqs

  1. Business Chambers and Trader Groups Grant:

A competitive grants program to support metropolitan and regional business chambers and trader groups.

Limited information has been released on this grant.

  1. Alpine Businesses Grant:

Grants of up to $20,000 to help alpine businesses pay a service charge to Alpine Report Management Boards..

Limited information has been released on this grant.

  1. Sole trader Support Fund:

Grants of up to $3,000 to over 30,000 eligible sole traders who operate from a commercial premises or location to which the sole operator is the tenant or licensee.

Limited information has been released on this grant.

Waivers and deferrals

The Government is also providing $1.8 billion in tax and cashflow support. These waivers and deferrals include:

  • $1.7 billion to defer payroll tax for businesses with payrolls up to $10 million 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.

Limited information as to the eligibility and application of the above has been released by Business Victoria.

Business Adaptation

This support provides additional funding, tools and resources to help businesses adapt and prepare for reopening under COVID normal settings.

  • $20 millionvoucher program to assist sole traders and small businesses in building their digital capability.
  • $15.7 millionpackage to help Victorian exporters get their products to market and establish new trade channels.
  • $8.5 millionexpansion to the ‘Click for Vic’ campaign to encourage more Victorians to support local businesses.
  • $87.5 million Outdoor Eating and Entertainment Packageto support hospitality businesses prepare for COVID Normal reopening across Victoria.
  • $100 million Melbourne City Recovery Fundbetween the Victorian Government and the City of Melbourne to support Melbourne on the roadmap for reopening to COVID Normal in the lead up to Christmas and during summer.

Limited information as to the eligibility and application of the above has been released by Business Victoria.

Davidsons are monitoring all updates regarding ongoing support being provided by Business Victoria.

Be sure to keep an eye out for our monthly newsletters / social media posts to keep up to date with ongoing support and additional details with regards to the above. As always, the Davidsons team is here to assist you navigate and apply for the above should you be eligible.

For more information contact your Davidsons team member. Alternatively call us on 03 5221 6399 or email us at info@davidsons.com.au for more assistance.

Disclaimer: this information is of a general nature and should not be viewed as representing financial advice. Users of this information are encouraged to seek further advice if they are unclear as to the meaning of anything contained in this article. Davidsons accepts no responsibility for any loss suffered as a result of any party using or relying on this article.