Melbourne SME COVID support extended

It has followed the announcement that the Melbourne lockdown will remain in place until 11:59pm on Thursday 2 September to suppress the Delta strain outbreak of the coronavirus.

The joint package of support is aimed at ensuring that the current level of support being provided to Melbourne SMEs (which was announced earlier this week) will continue during this two-week lockdown extension, the Commonwealth and Victorian governments said in a joint statement.

The vast majority of the $807 million package funded 50/50 by the Commonwealth and Victorian governments will flow automatically to more than 110,000 businesses in industries ranging from hospitality to non-essential retail, accommodation, events businesses, hairdressing, and beauty services.

Small Business COVID Hardship Fund

An additional $72 million is being allocated to the Small Business COVID Hardship Fund (which has now totalled $252 million), with grants increasing from $10,000 to $14,000 and is available to SMEs across the state.

The fund – which opened for applications on 12 August 2021 through the Business Victoria website – will provide funding for up to 18,000 businesses that have been ineligible for business support programs and have experienced at least a 70 per cent reduction in revenue.

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 businesses that could be eligible.

Business Costs Assistance Program

More than 110,000 businesses in metropolitan Melbourne will automatically receive payments of $5,600 ($2,800 per week) through a $625 million injection of funds.

The program is aimed to providing support for SMEs that are significantly affected due to the lockdown but continue to incur costs.

Licensed Hospitality Venue Fund 2021

An additional $110 million has been allocated to the licensed hospitality venue fund, under which automatic payments of $5,000, $10,000 and $20,000 per week will be made to about 7,000 licensed hospitality premises in metropolitan Melbourne that have previously received grants under the Licensed Hospitality Venue Fund 2021 or July Extension programs.

Payment amounts will be stepped according to premises capacity, with $5,000 allocated for a capacity of up to 99 patrons, $10,000 for 100 to 499 patrons, and $20,000 for a capacity of 500 or more.

COVID-19 Disaster Payments

The payments will be accessible to eligible workers across the state who lose hours of work due to the lockdown, as well as individuals who are sole trader business owners who lose work and do not qualify for Victorian government support programs.

The payment is set at $450 for people who have lost from eight 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 where they have lost eight hours or more of work due to the lockdowns.

Victorian microbusinesses and sole trader business owners who wish to apply for the disaster payment can access the Business Victoria Concierge Service and schedule an appointment that will provide them assistance to apply.

The Victorian government has provided more than $7 billion in direct economic support for businesses over the course of the COVID-19 crisis, including $1.4 billion in cash grants paid to more than 97,000 businesses since the May/June restrictions period.

Commenting on the extended support, Federal Treasurer Josh Frydenberg said: “The extended business support builds on the more than $45 billion in direct economic support the Morrison government has delivered to Victorian households and businesses during the pandemic.

“We have worked collaboratively with the Victorian government to give businesses as much certainty as possible during this challenging period, providing almost $2 billion in business support during this most recent outbreak alone.”

Victorian Treasurer Tim Pallas said the Victorian government has recognised the significant challenges SMEs are facing as Melbourne has sought to suppress the Delta strain.

He said: “Automatic payments mean money is transferred quickly to the accounts of businesses so they can continue to meet their commitments and plan for the future.

“We are locking down so that when we open again, we give ourselves the best chance of staying open. Businesses are looking for certainty, and it’s only by suppressing this volatile strain that we can achieve this.”

Victorian Minister for Industry Support and Recovery Martin Pakula commented that the Small Business COVID Hardship Fund, which has now totalled over $250 million, would play a critical role in supporting Victorian SMEs.

“We know there are businesses that have fallen through the cracks; businesses that haven’t qualified for support in the past but have nonetheless experienced dramatic impacts due to the pandemic,” Mr Pakula said.

“The hardship fund will support up to 18,000 businesses across the state – regional and metropolitan alike. We encourage businesses that believe they meet the criteria to make an application for support.”

[Related: Territories launch new and extended COVID relief]