Victorian SME COVID support extended

This includes a range of support for small to medium-sized enterprises (SMEs).

Last week, Premier Daniel Andrews confirmed that the statewide lockdown would remain until 70 per cent of Victorians have been administered at least one dose of a COVID-19 vaccine, currently expected to be around 23 September. 

In a joint statement, the Victorian and Commonwealth governments confirmed that a total of up to $2.34 billion will be distributed through five funds to provide further business support.

This forms part of the federal government’s previously announced commitment to introduce additional support once a state or territory enters a fourth week of lockdown (and follows a similar package in NSW). 

Small Business COVID Hardship Fund

An additional $448 million will be added to the fund (which was first introduced and extended during August), increasing the fund to a total of $700 million, and enabling grants for eligible SMEs to rise from $14,000 to $20,000. 

Any SME that had previously received a grant will receive an automatic top-up of $6,000. 

This program will also support any Victorian SME that was previously ineligible for any business support programs introduced since May that has experienced a reduction in revenue of at least 70 per cent. This will include businesses that are legally allowed to operate but are restricted in their ability to generate revenue.

The deadline for applications has also been extended to 10 September.

Licensed Hospitality Venue Fund 2021

Up to $289 million is going towards the Licensed Hospitality Venue Fund, to provide an estimated 9,300 licensed cafes, restaurants and bars tiered payments dependent on venue capacity. 

These payments range from $5,000 for venues with up to 99-person capacity, $10,000 for venues with a 100-499 person capacity, and $20,000 for venues with a capacity of over 500 people. 

Any businesses that previously received grants under the Licensed Hospitality Venue Fund 2021 and the July Extension programs will receive automatic payments (dependent on their capacity). 

Business Costs Assistance Program Round 4

The 132,000 Victorian businesses across multiple sectors that previously received support from the Business Costs Assistance Program Round Two, or the July Extension, will receive continued funds following a $1.6 billion boost into the program. 

These businesses are expected to receive automatic payments of $2,800 a week (if they have an annual payroll below $650,000), $5,600 a week (payroll of $650,000 to $3 million), or $8,400 (payroll of $3 million to $10 million).

Businesses will remain eligible while they are unable to operate due to public health restrictions.

Alpine Support Package – September Top-Up

Also included in this new support extension are any alpine businesses that suffered due to the current lockdown, with $11.2 million being provided to an estimated 430 businesses.

Alpine businesses located off-mountain will receive an automatic top-up of $10,000, while those on-mountain businesses with and without employees will receive $40,000 and $20,000, respectively.

COVID-19 Disaster Payments

The current COVID-19 Disaster Payments will remain unchanged under this new package.

Those who have lost between eight to 20 hours of work – or a full day of work over seven days – will be eligible for a weekly figure of $450. Those who have lost 20 hours or more of work are eligible for $750. 

Meanwhile, anyone who receives certain Commonwealth income support and has lost eight hours or more of work due to the lockdowns will remain eligible to receive an additional $200 payment. 

Treasurer Josh Frydenberg commented: “The Morrison Government understands the significant impact extended lockdowns have on individuals and businesses right across Victoria.

“We will continue to support Victorians, with our ongoing economic assistance to meet the challenges of the Delta strain.”

He said that the government had so far provided $1.3 billion in COVID-19 Disaster Payments to Victorians, supporting the incomes of around 500,000 individuals. 

When coupled with state government support, this totals more than $4 billion to small and medium-sized businesses over course of this lockdown.

He continued: “But there is light at the end of the tunnel. By sticking to the National Plan, agreed to by State and Territory leaders, we can safely ease restrictions and open up our economy.

“And as we progress towards our vaccinations targets of 70 to 80 per cent, the Morrison Government will continue to work closely with the State Government to support Victorian businesses through this difficult and challenging time.”

Victorian Treasurer Tim Pallas added: “Businesses of all colours and shades have shown great resilience and we’ll continue to back them as we move towards the levels of vaccination that we need in order to open up again in a sustained way.

“We are responding to changing circumstances with a package that is bigger than anything we’ve announced before, and it’s the right thing to do. It’s right for the dedicated business owners across the state and it’s right for their workers.

“This package will support our hardest-hit sectors and businesses and ensure they can keep paying the expenses that don’t go away just because the doors are shut.”

The news comes after last month’s announcement from Mr Frydenberg that the bar of eligibility for the SME Recovery Loan Scheme had been lowered. 

[Related: Government opens up criteria for SME Recovery Loan Scheme]