By Timothy Bow, Timothy BowManaging Partner - Melbourne
15 September 2020
The Victoria Government announced on 13 September 2020 an injection of $3 billion to assist businesses to survive the ongoing restrictions and prepare for COVID Normal business.
Grant applications open on Friday 18 September 2020.
The $3 billion funding will be invested as follows:
Small and Medium Sized Business ($822 million): The third round of the Business Support Fund will provide up to $20,000 for business with a payroll of up to $10 million (see below for further details).
Licensed Hospitality Business ($251 million): Grants of up to $30,000 for licensed pubs, clubs, hotels, bars, restaurants and reception centres, based on their venue capacity and location.
Business Chambers and Trader Groups ($3 million): A competitive grants program to support metropolitan and regional business chambers and trader groups.
Alpine Businesses ($4.3 million): Grants of up to $20,000 to help alpine businesses pay a service charge to Alpine Resort Management Boards.
The following funding seeks to provide resources and tools to assist Victorian businesses in preparation for reopening under COVID Normal settings:
- $20 million voucher program to assist sole traders and small businesses in building their digital capability.
- $15.7 million package to help Victorian exporters get their products to market and establish new trade channels.
$8.5 million expansion to the ‘Click for Vic’ campaign to encourage more Victorians to support local businesses.
Waivers and Deferrals
The Victorian Government is also providing $1.8 billion in tax and cash flow support:
- $1.7 billion in payroll tax deferrals for the full 2020-21 financial year.
- $41 million to bring forward the 50% stamp duty discount for commercial and industrial property for all of Regional Victoria.
- $33 million to defer the planned increase in the landfill levy for six months.
- $30 million to waive 25% of the Congestion Levy this year, with the outstanding balance deferred.
- $27 million in liquor license fee waivers for 2021.
$6 million to waive Vacant Residential Land Tax for vacancies in 2020.
Third Round of Business Support Fund Grants
The amount of grants available from this program range from $10,000 to $20,000 depending on the business’ annual payroll.
To be eligible for a grant from this program, applicants must:
- operate a business located within Victoria; and
- participate in the Commonwealth Government’s JobKeeper Payment scheme; and
- employ people and be registered with WorkSafe; and
- have had an annual payroll of less than $10 million in 2019-20; and
- be registered for Goods and Services Tax (GST); and
- hold an Australian Business Number (ABN); and
- be registered with the responsible Federal or State regulator.
An eligible business will receive:
- $10,000 if its annual payroll is less than $650,000.
- $15,000 if its annual payroll is between $650,000 and $3 million.
- $20,000 if its payroll is between $3 million and $10 million.
A full list of the eligibility criteria for a grant will be published when applications open on Friday 18 September 2020.