Victoria’s new business support package is divided roughly into three segments and includes:
- $1.1 billion in cash grants to support small and medium-sized businesses that are most affected by coronavirus restrictions
- $1.8 billion to defer payroll tax for businesses with payrolls up to $10 million for the full 2020–21 financial year
- $44 million to equip businesses with the support they need to thrive under a COVID normal
The Victorian government recognised SMEs as being most affected by coronavirus restrictions, with $1.1 billion in support pledged to this sector.
- 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
- 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
How to access the additional grant program?
The amount of grants available from this program ranges from $10,000 to $20,000 depending on the business’s annual payroll. To be eligible for a grant from this program, applicants must:
- operate a business located within Victoria;
- participate in the Commonwealth government’s JobKeeper payment scheme;
- employ people and be registered with WorkSafe;
- have had an annual payroll of less than $10 million in 2019–20;
- be registered for goods and services tax (GST);
- 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.
The package also provides additional funding, tools and resources to help businesses adapt and prepare 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 state 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 per cent 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 per cent of the congestion levy this year, with the outstanding balance deferred
- $27 million in liquor licence fee waivers for 2021
- $6 million to waive vacant residential land tax for vacancies in 2020
On Monday, Victoria also announced a new round of support for sole traders worth $100 million. More information on this support can be found here.