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Overview of Vic business support: What’s available and how to access it

Maja Garaca Djurdjevic
Maja Garaca Djurdjevic
14 September 2020 2 minute readShare
Overview of Vic business support

Over the weekend, the Victorian Premier announced the state’s largest business stimulus package in history, pledging an additional $3 billion in cash grants and tax relief for businesses, including some $1.1 billion to support SMEs alone.

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

Business survival

The Victorian government recognised SMEs as being most affected by coronavirus restrictions, with $1.1 billion in support pledged to this sector.

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This includes:

  • 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.

Business adaptation

The package also provides additional funding, tools and resources to help businesses adapt and prepare for reopening under COVID normal settings.

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  • $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.

Overview of Vic business support: What’s available and how to access it
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Maja Garaca Djurdjevic
Maja Garaca Djurdjevic

Maja Garaca Djurdjevic is the editor of My Business. 

Maja has a decade-long career in journalism across finance, business and politics. Now a well-versed reporter in the SME and accounting arena, prior to joining Momentum Media, Maja reported for several established news outlets in Southeast Europe, scrutinising key processes in post-conflict societies and enabling citizens to influence decision-making.

You can email Maja on [email protected] 

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