Following Premier Daniel Andrews’ announcement last week that parts of the state were being plunged back into COVID-19 lockdown, the Victorian government has unveiled a $534 million support package for businesses.
The support measure includes cash grants of $5,000 for approximately 80,000 eligible businesses in metropolitan Melbourne and Mitchell Shire, which moved back into Stage 3 COVID-19 restrictions last Wednesday night.
The package will also include a $30 million fund for hospitality business, and $20 million for small businesses in Melbourne’s CBD although, no announcement has yet been made as to how those funds will be deployed.
A further $26 million has also been set aside for mental health support and mentoring for small business owners - including sole traders – an important component of the latest round of support as, according to a recent report in The Guardian calls to mental health support service Beyond Blue have doubled over the past fortnight, as COVID-19 restrictions have returned.
A separate amount of $40 million has also be allocated to regional tourism businesses, to help cover refunds and marketing costs now that city-dwellers won’t be travelling again any time soon.
Victoria’s Payroll Tax deferral scheme is also being extended. Eligible businesses with payroll of up to $10 million will be able to defer their liabilities for the first half of the 2020/21 financial year.
The Government’s announcement of the $5,000 grants is in addition to the Premier’s unveiling of the Business Support Fund grants unveiled week beginning 28 June, for businesses within the 12 Melbourne ‘hotspot’ postcodes that were locked down first and hence, the latest grants are an extension of the same scheme.
When the city-wide shutdown was announced on Monday 6 July, the wording on the government’s business support page changed substantially, suggesting the grants scheme could open up to more businesses, but details were not clear however, at the time of release no details yet on what the eligibility criteria will be.
Businesses can register their interest for the grant here.
Victorian treasurer Tim Pallas said the latest package had been drawn up in “close consultation” with both the Victorian Chamber and the Victorian Hotels Association and it brings the state’s total stimulus to $6 billion, he said.
“What’s critically important, is that the wellbeing of Victorians and Victorian industry and business is first and foremost in our thinking during these difficult times,” Pallas said.
“That is our driving focus and that will be the effort where we put our continuing support over the weeks to come.”
The Treasurer also noted there will be additional measures announced at a later date.
“This is a testing time for business,” he said.
“We are putting in place real, tangible efforts to assist the community, and those real tangible efforts will be ongoing.
“This will not be the last that you hear of the support from this government as we go through these difficult times.”
Pallas suggested that any additional measures will likely follow the Federal government’s update on July 23, with regards to its own business support plans once the JobKeeper program comes to an end at the end of September.
“That of course will inform us going forward as to what further, additional support might be required for the community,” he said.
