The Victorian Government has today announced a $367 million joint Commonwealth-Victorian package will flow to more than 100,000 businesses across Melbourne.
Under the new initiative, businesses including sole traders who have received or been approved for a Business Costs Assistance Program Round Two or Business Costs Assistance Program Round Two July Extension grant, or a Licensed Hospitality Venue Fund grant, will receive an automatic payment.
A significant boost to the new Small Business COVID Hardship Fund that is expected to open today will take the one-off payments for eligible businesses that do not qualify for existing programs to $10,000.
The new package contains three main elements, with agreement also reached between the two Governments to extend Commonwealth COVID-19 Disaster Payment arrangement for workers and eligible businesses affected by the metropolitan Melbourne lockdown extension.
COVID-19 Disaster Payments
Eligible workers across the state who lose hours due to the lockdown will be able to access the Commonwealth’s COVID-19 Disaster Payment, as will individuals who are sole-trader businesses who lose work and that do not qualify for Victorian Government support programs.
The COVID-19 Disaster Payment is administered through Services Australia, with the Federal Government funding the areas declared a Commonwealth hotspot and the Victorian Government assuming responsibility to fund payments in the rest of the state.
The payment is set at $450 for people who have lost from eight and up to 20 hours work or a full day of work (over seven days), and $750 for 20 hours or more of work lost. People who receive certain Commonwealth income support are eligible to receive a $200 payment.
Small Business COVID Hardship Fund
An allocation of $41 million will boost the Small Business COVID Hardship Fund to $180 million, with grants of $10,000 available to small- and medium-sized businesses across the state.
The fund is expected to open for applications today through the Business Victoria website and will help up to 18,000 businesses that have been ineligible for business support programs and have experienced a reduction in revenue of at least 70 per cent.
Businesses that are legally allowed to operate but are restricted in their ability to generate revenue – such as a food store located at a shopping centre or a manufacturer supplying goods for closed venues – will be among those that that could be eligible.
Businesses that have lost custom due to restrictions affecting foot traffic – such as pharmacists located in the CBD – could also be eligible.
Business Costs Assistance Program
More than 95,000 businesses in metropolitan Melbourne will automatically receive payments of $2,800, with grants scheduled to be paid within seven business days.
This new $271 million Business Costs Assistance Program assistance will allow businesses across multiple sectors to continue paying overheads and other costs despite significant impacts on revenue.
Licensed Hospitality Venue Fund 2021
Automatic payments of $5,000, $10,000 and $20,000 will be made in coming weeks to more than 7,000 licensed hospitality venues in metropolitan Melbourne that have previously received or been approved grants under the Licensed Hospitality Venue Fund program. A total of $55 million has been allocate to the new licensed venue initiative.
Payment amounts will be tiered according to premises capacity: $5,000 for a capacity of up to 99 patrons, $10,000 for a capacity of 100 to 499 patrons and $20,000 for a capacity of 500-plus.
More information about the business programs is available at business.vic.gov.au
Should you have any questions or need any help to ensure you receive all available assistance, please reach out to our team at Rose Partners and we will do our best to assist.
The Team at Rose Partners