A support package has been announced providing a four-week boost to small and medium sized Victorian business who have been most impacted by the current government-imposed restrictions.
The package, which has been jointly funded by the Commonwealth and Victorian Governments, will provide further support to approximately 175,000 Victorian businesses.
The support payments span over a 4-week period, ending on Thursday the 30th September 2021.
Majority of the support payments will be deposited automatically into a businesses assigned bank account, but a new tiered payment scheme for the Business Costs Assistance Program will assist businesses with more workers to receive a higher payment.
Business Cost Assistance Program
Funding will assist approximately 132,000 businesses across various industries who received the Business Costs Assistance Program Round Two or the July Extension. To read more about these previous programs, please refer to our article ‘COVID-19 Business Support Article’.
These Victorian businesses will automatically receive support payments to cover regular costs such as wages, rent, utilities and insurance. The weekly payments received will be based on the businesses annual payroll, and are detailed below:
- $2,800 a week for a business with an annual payroll of $650,000
- $5,600 a week for businesses with an annual payroll of $650,000 – $3 million
- $8,400 a week for businesses with an annual payroll of $3 million – $10 million.
Businesses will remain eligible while they are unable to operate due to Victorian public health restrictions.
Licensed Hospitality Venue Fund 2021
Over 9,300 Victorian premises who have been impacted by the current lockdown will receive financial support under this program. Those who have previously received grants under the Licensed Hospitality Venue Fund 2021 or July Extension programs will automatically receive these support payments. For further information on the Licensed Hospitality Venue Fund 2021 or July Extension, please refer to our article ‘COVID-19 Business Support Article’.
The payments will be based on premises capacity, and are outlined below:
- $5,000 for a capacity of 99 patrons or less, or where patron capacity is not specified
- $10,000 for a capacity of between 100-499 patrons
- $20,000 for a capacity of 500 or more patrons.
Hospitality businesses will remain eligible while they are unable to operate due to public health restrictions.
Small Business COVID Hardship Fund
Recognising the financial impact of the lockdown extensions, the Government announced a boost $448 million to go towards the Small Business COVID Hardship Fund. This increases the total grant amount available to small and medium sized businesses from $14,000 to $20,000.
The Fund currently sits at $700 million, providing support to almost 35,000 Victorian businesses. Some 16,000 businesses that have previously received a Small Business COVID Hardship Fund grant will automatically receive a top-up payment of $6,000.
This program aims to help businesses who have been ineligible for Victorian Government business support programs since May 2021 but have suffered a revenue reduction of at least 70%. This includes Victorian businesses that are legally allowed to operate but are restricted in their ability to generate revenue.
Those who are eligible for this support fund can apply on the ‘Small Business COVID Hardship Fund’ webpage. At this stage applications will close on Friday the 10th of September 2021, but this date may be extended. The Davidsons team will communicate whether this date has been extended as more information is released.
For more information about available business support programs and whether you are eligible to receive a support payment, please refer to the Business Victoria Website. The Davidsons team is also here to help you during this time. If you have any questions regarding the above business support payments, email us on email@example.com or call us on (03) 5221 6399.
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.