A jointly funded package of grants from the Commonwealth and Victorian Governments will support thousands of small and medium-sized businesses through the next six weeks at which point Victoria is expected to reach 80% vaccination.
The funding package of up to $2.27 billion announced will support businesses most affected by restrictions as Victoria reaches the 70%, then 80% fully vaccinated thresholds on the state’s Roadmap to Deliver the National Plan.
At these key markers, forecast around 26 October and 5 November respectively, dining, entertainment, retail, sport, recreation, and other sectors will progressively and safely open.
Providing certainty to businesses
The package announced today provides businesses with further certainty that support will continue in line with Victoria’s Roadmap. This will see more than 160,000 businesses receive support, ranging from retailers and gyms to hairdressers and hotels – mostly through automatic deposits into their bank accounts.
Of these, around 124,000 eligible businesses will receive automatic Business Costs Assistance Program grants ranging from $1000 to $8400 per week, rising according to payroll, until the end of October. Businesses that remain closed or severely restricted over the first two weeks of November will also receive automatic payments for that period.
Support for hospitality
More than 9000 eligible cafes, restaurants, hotels and bars across Victoria will receive automatic Licensed Hospitality Venue Fund payments of between $5000 and $20,000 per week until the end of October.
Licensed Hospitality Venue Fund payments will continue for the first half of November, set at reduced rates to reflect lower restrictions in place at that stage under Victoria’s Roadmap.
The package will also enable a further 30,000 businesses to receive a one-off $20,000 payment through the Small Business COVID Hardship Fund, taking the number of recipients to 65,000.
Working together on the road to reopening
Since late July, the Commonwealth and Victorian Governments have joined forces to allocate $6.6 billion to help Victorian businesses remain viable through lockdown, with automatic payments and grants to help cover wages, rent, utilities and other costs.
Business Costs Assistance Program Round Five
Funding of up to $1.26 billion will provide for automatic payments to recipients of the Business Costs Assistance Program in Phase A and Phase B of Victoria’s Roadmap.
Businesses will be eligible to receive two fortnightly payments in Phase A of Victoria’s Roadmap to Deliver the National Plan.
Eligible non-employing businesses will receive $1000 per week, increasing to $2800 a week for an annual payroll of up to $650,000, $5600 a week for a payroll of $650,000 to $3 million and $8400 a week for a payroll of $3 million to $10 million.
Businesses that remain closed or severely restricted between 70% and 80% double dose will receive an automatic payment for the Phase B period.
Businesses that have previously received or been approved for a Business Costs Assistance Program Round Two or July Extension grant will be eligible for these payments.
See Business Costs Assistance Program Round Five for details.
Licensed Hospitality Venue Fund
More than 9000 licensed hospitality businesses that have previously received grants under the Licensed Hospitality Venue Fund or July Extension programs will receive further automatic payments in October.
Weekly payment amounts are stepped according to premises capacity: $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, and $20,000 for a capacity of 500 or more.
Between 70% and 80% double dose, payments for licensed premises in metropolitan Melbourne will be reduced by 25%, and in regional Victoria by 50% as the economy continue to progress to greater levels of freedom.
The Licensed Hospitality Venue Fund payments will total up to $407.5 million for the six-week period.
Small Business COVID Hardship Fund
Some $600 million has been added to the Small Business COVID Hardship Fund, taking the total program to $1.3 billion.
The existing $700 million funding pool has been fully subscribed and the new allocation means 65,000 businesses will now be supported with one-off grants of $20,000.
The Fund supports businesses that have suffered significant losses due to the pandemic, including businesses legally allowed to operate but restricted in their ability to generate revenue, but have previously fallen between the cracks in terms of government support.
(There are no dates available for this fund as yet.)
STS Accounting Group will continue to provide you with any further information regarding the above funding and new grants as they become available.
This information was sourced directly from Business Victoria. To follow the Business Victoria announcements as they occur click here