KW Insights | $2.34 billion provided by the Federal & State Governments

The Commonwealth Government & Victorian State Government have announced a jointly funded $2.34 billion package to support Victorian businesses in the latest round of lockdown spending to keep struggling businesses afloat, as the state aims to exit current lockdown measures once vaccination targets are met.

These latest round of support payments will cover the four week period ending on 30^th September 2021.

The vast majority of payments will be deposited automatically into businesses’ bank accounts, while a new tiered payments system for the Business Costs Assistance Program will allow for higher payments to businesses with more workers.

Business Costs Assistance Program

Funding of up to $1.6 billion will support about 132,000 businesses across multiple sectors who were recipients of the Business Costs Assistance Program Round Two or July Extension.

Businesses throughout Victoria will receive automatic payments to cover ongoing costs such as wages, rent, utilities and insurance:

• $2800 a week for businesses with an annual payroll below $650,000
• $5600 a week for businesses with an annual payroll between $650,000 and less than $3 million
• $8400 for businesses with an annual payroll of $3 million to $10 million.

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

Licensed Hospitality Venue Fund 2021

Up to $289 million funding will support more than 9,300 premises impacted by lockdown. Licensed hospitality businesses that have previously received grants under the Licensed Hospitality Venue Fund 2021 or July Extension programs will receive automatic payments based on premises capacity:

• $5,000 for a capacity of up to 99 patrons or where patron capacity is not specified
• $10,000 for a capacity of 100 to 499 patrons
• $20,000 for a capacity of 500 or more.

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

Small Business COVID Hardship Fund

The Small Business COVID Hardship Fund will receive a $448 million boost, increasing the total grant amount available to small and medium-sized businesses from $14,000 to $20,000 in recognition of the impact of the lockdown extension.

The 16,000 businesses that have already received a Small Business COVID Hardship Fund grant will receive an automatic top-up payment of $6,000.

This program supports businesses that have been ineligible for Victorian Government business support programs since May but have experienced a reduction in revenue of at least 70 per cent. This includes businesses that are legally allowed to operate but are restricted in their ability to generate revenue.

Applications for the Small Business COVID Hardship Fund close on 10 September.

Alpine Support Package

The Alpine Support Package will help sustain resorts through the remainder of the season and September school holidays with an automatic top-up payment of between $10,000 and $40,000, depending on business location and whether they employ staff.

For more information on the above grants visit the Business Victoria Website or contact your King & Whittle adviser.