The Commonwealth and Victorian Governments have announced a jointly funded package to support thousands of small and medium-sized businesses to reopen through the next six weeks as Victoria reaches 70 to 80 percent fully vaccinated threshold.
This will provide support to more than 160,000 businesses, ranging from retailers and gyms to hairdressers and hotels. Of these, around 124,000 eligible businesses will receive a grant from Business Costs Assistance Program.
To help the local businesses remain viable through the lockdown, the Commonwealth and Victorian Governments have allocated $6.6 billion with automatic payments and grants to help cover wages, rent, utilities, and other costs since late July.
The govt. stated that “We can’t eliminate the virus, we need to learn to live with it in a COVID-safe way. Our economy has bounced back strongly after the restrictions were eased and are well positioned to do so again when the lockdown lifts.” We understand the significant impact lockdown and border closure have had on small and medium businesses across Victoria, which is why we have agreed to safely open up.
The Victorian Government has already provided more than $10 billion in direct financial support for businesses in the past along with this new $1.1 billion joint package.
This funding will ensure businesses have the opportunity of sustaining the final weeks of lockdown and recovering strongly, Victorian Treasurer Tim Pallas said
Business Costs Assistance Program Round Five
Funding of up to $1.26 billion automatic payments will be provided to the recipients of the Business Costs Assistance Program across October and into the first half of November.
All eligible non-employing businesses will receive $1,000 per week, increasing to $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.
Also, the businesses that have previously received or approved for a Business Costs Assistance Program Round Two or July Extension grant will also be eligible to receive these weekly payments.
Licensed Hospitality Venue Fund
If you own hospitality business in Victoria and has previously received grant under Licensed Hospitality Venue Fund or July Extension programs, you are eligible for receiving automatic payments in October.
The weekly payment amounts are granted according to the capacity of a premise, i.e. $5,000 for a capacity of up to 99 patrons, $10,000 for a capacity of 100 to 499 patrons, and $20,000 for a capacity of 500 or more.
Small Business COVID Hardship Fund
This hardship fund is introduced to support the local Victorian businesses that have suffered significant losses due to lockdown restrictions. Around $600 million has been added to the Small Business COVID Hardship Fund, taking the total program to $1.3 billion.
If you are eligible for getting any of these grants or are interested in knowing how your small business can benefit from the reopening scheme, feel free to contact our taxation consultants at KPG Taxation today. We’ll be more than happy to help you.