KW Insights | Vic Government Commits $2.27b to Reopening
The Victorian State Government has announced a $2.27 billion package to Victorian businesses as it gears up to reach the 70% and then 80% vaccination thresholds on its roadmap to re-opening.
With businesses forecast to progressively open from around 26th October and 5th November respectively, the Business Costs Assistance Program, Licenced Venue Hospitality Fund and the Small Business Hardship Fund have been extended across October and early November.
Business Costs Assistance Program Round 5
Funding of up to $1.26 billion will provide for automatic payments to recipients of the Business Costs Assistance Program across October and into the first half of November.
Businesses will be eligible to receive two fortnightly payments between 1-29 October on a rising scale.
- Eligible non-employing businesses will receive $1,000 per week
- $2,800 a week for an annual payroll of up to $650,000;
- $5,600 a week for a payroll of $650,000 - $3 million, and
- $8,400 a week for a payroll of $3 million - $10 million.
Businesses that remain closed or severely restricted between 70 and 80% double dose will receive an automatic payment for the period from 29 October to 13 November.
Businesses that have previously received or been approved for a Business Costs Assistance Program Round Two or July Extension grant will be eligible for these payments.
Licenced Venue Hospitality Fund
The Licensed Hospitality Venue Fund payments will total up to $407.5 million for the six-week period beginning the start of October.
More than 9,000 licensed hospitality businesses that have previously received grants under the Licensed Hospitality Venue Fund or July Extension programs will receive further automatic payments in October.
Weekly payment amounts are stepped according to premises capacity:
- 1-99 Patrons $5,000
- 100-499 Patrons $10,000
- 500+ Patrons $20,000
Between 70 and 80% double dose, payments for licensed premises in metropolitan Melbourne will be reduced by 25%, and in regional Victoria by 50% as the economy continue to progress to greater levels of freedom.
Small Business Hardship Fund
$600 million has been added to the Small Business COVID Hardship Fund, taking the total program to $1.3 billion.
The existing $700 million funding pool has been fully subscribed and the new allocation means 65,000 businesses will now be supported with one-off grants of $20,000.
The Fund supports businesses that have suffered significant losses due to the pandemic, including businesses legally allowed to operate but restricted in their ability to generate revenue, but have previously fallen between the cracks in terms of government support.
For more information on the above assistance programs, please read the announcement don’t hesitate to contact your King & Whittle advisor.