Victorian Premier Daniel Andrews arrives at a press conference in Melbourne. Source: AAP/James Ross.
The Victorian government has announced a new $807 million business support package that’s jointly funded by the federal and state governments in response to Melbourne’s ongoing Delta coronavirus outbreak.
The fresh round of funding comes one week after the government announced a $367 million joint package and several days after tougher restrictions came into effect across metropolitan Melbourne.
Announcing the package on Thursday, Victorian Treasurer Tim Pallas said the government recognises “the serious challenges” faced by businesses while restrictions are in force.
“We are locking down so that when we open again, we give ourselves the best chance of staying open,” Pallas said.
Here’s a round up of the small business support payments the Victorian government has announced to date.
Licensed Hospitality Venue Fund
The support package announced on Thursday will inject a further $110 million into the Licensed Hospitality Venue Fund.
The August 19 top up will give businesses $5,000, $10,000 or $20,000 per week depending on their size, according to a statement from the Premier
Venues that can hold up to 99 patrons will receive $5,000, those that can hold between 100 and 499 will receive $10,000 and larger venues will receive $20,000.
To be eligible for the automatic payments, businesses must have already received grants under the Licensed Hospitality Venue Fund 2021 or July Extension program.
The newly announced grants come one week after the Victorian government unveiled the August 12 top up payments.
The August 12 top up also includes $5,000, $10,000 or $20,000 payments for hospitality venues in metropolitan Melbourne that have already received funding from the Licensed Hospitality Venue Fund during the May and July lockdowns.
Businesses that didn’t apply for the program in June can lodge applications for the Licensed Hospitality Venue Fund 2021 July Extension which closes on August 20.
The July extension offers grants of $7,200 to eligible liquor licensees to help them cover business costs. Businesses with an eLicence email address registered with the Victorian Commission for Gambling and Liquor Regulation will receive an application link from Business Victoria via email.
Liquor licensees without an eLicence email address were required to have set one up on their VCGLR Portal by August 9 to receive their grant application link.
Business Cost Assistance Program
The latest round of funding includes a significant $625 million boost to the Business Cost Assistant Program.
Under the expanded program, businesses in metropolitan Melbourne that have previously received a grant will automatically receive payments of $5,600 or $2,800 per week, a statement from the Premier confirms.
The newly announced payments come one week after the government announced round three of the Business Cost Assistance Program last Thursday.
On August 12, a jointly funded federal and state government package injected $266 million into round three of the Business Cost Assistance Program. The third round of grants is expected to provide about 90,000 businesses with automatic payments of $2,800.
Businesses that didn’t receive a grant under round two or the round two extension aren’t eligible to receive funding under the Business Costs Assistance Program Round Three.
If you think you were eligible for the round two extension payment you can still lodge an application online at Business Victoria until August 20.
Business Continuity Fund
The Business Continuity Fund is designed to help businesses that continue to be affected by capacity limits.
The fund covers 24 eligible sectors, including gyms, cafes, restaurants, event businesses, catering services and hairdressers.
To be eligible for the $5,000 grants, businesses must have already received a grant through the Business Cost Assistance Program.
Businesses located in the CBD that continue to be affected due to restrictions on the number of staff allowed in offices will receive a larger grant of $7,000.
These payments are automatically paid to businesses operating within the 24 eligible sectors that have already received the Business Cost Assistance Program Round Two and the Business Costs Assistance Program Round Two July Extension payments.
Small Business COVID Hardship Fund
The Small Business COVID Hardship Fund will now offer grants of up to $14,000 to small businesses that aren’t eligible for other grant programs and have experienced a 70% reduction in turnover.
The fund is designed to help businesses that are legally allowed to operate but are unable to generate revenue due to restrictions, such as a food store located within the retail section. It’s also intended to help businesses that have less customers due to restrictions, such as pharmacists in the CBD or catering businesses.
To be eligible, businesses must have experienced a reduction in revenue of at least 70% due to restrictions in place between May and August.
Businesses applying for the grant must also be registered for GST and not be eligible for other Victorian COVID-19 business grant programs that have been announced since May 27.
Applications must include evidence of a reduction in revenue of at least 70% for a minimum consecutive two-week period since May 27, when compared to a trading period not affected by restrictions. In making this calculation, businesses can compare their best two-week trading period between May 27, 2019 and September 10, 2019, with their worst consecutive two-week trading period between May 27, 2021 and September 10, 2021.
Eligible Victorian businesses can have a qualified agent such as an accountant, tax agent or registered BAS agent apply on their behalf, or they can apply themselves and provide evidence of a reduction in turnover verified by a qualified agent.
Business owners who don’t have access to a qualified agent can also register their interest for the program and will receive an email with further information.
Alpine Business Support Program
Alpine businesses are eligible for $5,000 for off-mountain venues or $20,000 for employing on mountain businesses, under a $10.6 million extension of the Alpine Business Support Program. The Victorian government should contact any business that’s eligible for the program about the application process. The support packages announced on August 12 and August 19 have not added to these grants.
Rent relief
When the two-week lockdown lifted on midnight July 27, the Victorian government reintroduced its Commercial Tenancy Relief Scheme. The scheme is available to businesses with turnover of less than $50 million that have suffered a decline in turnover of at least 30%.
The scheme requires landlords to provide rent relief equivalent to a business’s reduction in turnover, with half of the reduction to be waived and half to be deferred.
The rent relief is calculated by comparing a business’ turnover for the final quarter of the 2020/21 financial year with turnover from the final quarter of 2018/19.
The Victorian government says new businesses won’t miss out on this assistance and that “special arrangements” will be in place to assess the turnover impacts for new businesses that were not operating in 2019.
To help landlords offer rent relief, the Victorian government is providing land tax relief of up to 25% in addition to any previous relief. Small landlords who can demonstrate acute financial hardship will be eligible to apply for payments as part of a $20 million hardship fund.
Live Performance Support program
The live performance grants are designed to help businesses and artists in the live performance industry who have been affected by event cancellations between May 27 and September 2 this year.
The program includes two streams, with the first catering to presenters and the second catering to suppliers.
The Live Performance Support program (Presenters) round two grants are currently open to producers, promoters, venue owners and artists who promote their own shows.
Presenters can apply for $7000 or $5000 for one event, and a further $5000 for a second event. There’s a cap of $12,000 per applicant across the two rounds of the program. See here for the full eligibility criteria.
The Live Performance Support program (Suppliers) round two grants are open to suppliers contracted to work on events, including performers, crew, technicians and engineers.
Suppliers can apply for $200 or $500 per event up to a maximum of 20 events or $4000 in total support over both rounds of the program. See here for the full eligibility criteria.
The presenter and supplier grants are also open to Victorian-based arts workers who have lost scheduled work interstate.
Applications are set to close for both grants on September 8.
This article was first published on August 17, 2021 and has been updated to include new support announced by the Victorian government on Thursday August 19.
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COMMENTS
So what about businesses that were days away from opening for the first time,but never got to open due to covid closing beauty salons? Their life savings gone in a blink of an eye. No compensation??
Yup, this is exactly what happened to me in March 2020. I was ineligible for everything throughout all of last year, it truly was a disaster.
We run a herb farm supplying restaurants in the CBD. Due to restrictions we have had no income since lockdown 4 and no help from the government
I’m an eligible business but so far have yet to see one cent of support. My hair salon is closed and I have
seen a one hundred percent reduction in income. Why are these grants taking so long???
we just start cleaning business a month ago , and now no client how about that we cant provide 70% decrease in income than previous quarter.
What about sole trader entertainers? Eg DJs / live music etc
If you’re not registered for GST you can get the commonwealth disaster payment through MyGov, but also you can apply for the Business Victoria Live Performance Support Program for lost gigs you had booked between the period described on the application. That’s about all that’s possible.
So i am a sole trader but not registered with worksafe as they wont insure a sole trader that doesnt employ people. What do i do?
You don’t have to be registered with worksafe unless you’re employing other people. So as a sole trader you don’t have to fill out anything on the part of whatever form you’re applying to regarding worksafe.
Just a heads up to everyone, the turnover calculation explained above has been amended. The best 2 week period compared to the worst 2 week period cannot be any dates within that date range. The worst 2 week period you choose in 2021 needs to be compared to the same date range in 2019 (within 3 days) if you have a comparable period.
So because I don’t have gst im not eligible for any of it. I run my own cleaning business on my own and have lost so much money im even that close off being evicted single mum of 2 kids. Was earning 650 a week to nothing. Thats 1300 a fnight im so close in giving up in life. Its to much
yeh it sucks heaps that you can’t apply for any business grant. Did you apply for the Commonwealth disaster payment though? That was $600 a week and now $750 a week. You’re eligible for that if you aren’t for the others? I know it’s not the same but it’s something at least.
I also have an established cleaning business and ive just applied for the disaster payment but I am not registered for gst and not sure if I am entitled to anything else. Also a mum with children on my own, it’s not easy.
I tried the my gov hardship application and when i put in the final detail which was the shire it told me i was not eligble! A sole trader with no gst i cant seem to successfully apply for anything from my regional location
I don’t see any assistance provided to not for profits or Charities impacted by COVID lockdowns.Am I missing something? We rely on being able to hold face to face events, the venues do vary according to the event.