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Victorian SMEs impacted by the state’s sixth lockdown will be supported by a new $400 million package jointly funded by the Commonwealth and Victorian governments.
The jointly funded package, which includes cash payments and grants, aims to give “Victorian small and medium businesses the extra support and confidence they need to recover from the most recent lockdown”.
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The new lockdown, which started at 8pm on Thursday (5 August), will last for seven days as the state works to contain an outbreak of the Delta variant of the COVID-19 virus.
New grants
The new package builds on the $400 million Commonwealth-State injection already announced last month.
Under the new State-Commonwealth business support package, more than 90,000 businesses will be automatically paid a Business Costs Assistance Program Round Three grant of $2,800 – an allocation of $266 million.
As part of a Licensed Hospitality Venue Fund, new payments of $5,000 to $20,000 will be made to more than 8,900 hospitality venues across Victoria that received funding support from the Licensed Hospitality Venue Fund through the May/June and July lockdowns. These payments will be automatic and graded by venue capacity to a total of $68.8 million.
Alpine businesses will receive between $5,000 (off-mountain) and $20,000 (employing businesses, on-mountain) under a $10.6 million extension of the Alpine Business Support Program.
Meanwhile, around $54 million will be added to the Small Business COVID Hardship Fund announced last month, allowing grants of up to $8,000 to be paid to small businesses that are not eligible for support under existing programs and have experienced a 70 per cent reduction in turnover.
As per the COVID-19 Disaster Payments, eligible workers across the state who lose hours due to the lockdown will be eligible for support through the Commonwealth’s COVID-19 Disaster Payment, as will businesses that do not qualify for Victorian government support programs because they are not registered for GST.
According to the Victorian state government, the COVID-19 Disaster Payment will be administered through Services Australia, with Victoria assuming responsibility to fund payments in areas that have not been declared a hotspot by the Commonwealth.
Federal Treasurer Josh Frydenberg commented: “Since the start of the pandemic, the federal government has delivered more than $45 billion to Victorian families and businesses to support them in their hour of need.
“On top of the $415 million in COVID-19 Disaster Payments and business support we have provided in recent weeks, we are now delivering a further $200 million in business support for Victorian Business.
“This will help cushion the blow of the recent lockdown and provide hope for the future.”
Victorian Treasurer Tim Pallas added: “Every step of the way since this global pandemic began, Victoria has not shirked its responsibility to back our business community – this is immediate and targeted support right now, when it is needed most.”
Victorian Minister for Industry Support and Recovery, Martin Pakula, added: “Decisive action is required to tackle this incredibly infectious strain of coronavirus, but we know it doesn’t come without a cost.
“This support will help the worst-affected businesses pay their bills and plan for a strong recovery.”
The Victorian government has reportedly provided more than $7 billion in direct economic support for Victorian businesses since the start of the pandemic.
[Related: Governments extend COVID support to NSW, Vic]
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