Victorian Government Assistance
Victorian Government Assistance
Victorian Government Assistance Package - Phase 3
The Victorian Government is investing $3 billion to help businesses impacted by ongoing restrictions and prepare for COVID Normal business.
$3 billion in cash grants, tax relief and cashflow support will be delivered to Victorian businesses that have been most affected by coronavirus (COVID-19) restrictions. The package is designed to help businesses survive in the current lockdown.
It basically comprises of 2 sections:
Business Support and Business Adaptation
Support for businesses currently undergoing hardship and adaptation in gearing up to adapt to the new covid-normal way of conducting business.
Business Support consists of the following:
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. Grant applications open on Friday 18 September 2020.
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.
Business Adaptation consists of the following measures:
$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.
$87.5 million Outdoor Eating and Entertainment Package to support hospitality businesses prepare for COVID Normal reopening across Victoria.
$100 million Melbourne City Recovery Fund between the Victorian Government and the City of Melbourne to support Melbourne on the roadmap for reopening to COVID Normal in the lead up to Christmas and during summer.
Tax Waivers and Deferrals
In addition the State Government is providing a series of waivers and deferrals on various state taxes and charges:
- $1.7 billion to defer payroll tax for businesses with payrolls up to $10 million for the full 2020-21 financial year
- $41 million to bring forward the 50% 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% of the Congestion Levy this year, with the outstanding balance deferred
- $27 million in liquor license fee waivers for 2021
- $6 million to waive Vacant Residential Land Tax for vacancies in 2020.
Who is eligible ?
In order to be eligible for the business grants, certain conditions must be met:
The amount of grants available from this program range from $10,000 to $20,000 depending on the business’ annual payroll. To be eligible for a grant from this program, applicants must:
- operate a business located within Victoria; and
- participate in the Commonwealth Government’s JobKeeper Payment scheme; and
- employ people and be registered with WorkSafe; and
- have had an annual payroll of less than $10 million in 2019-20; and
- be registered for Goods and Services Tax (GST); and
- hold an Australian Business Number (ABN); and
- be registered with the responsible Federal or State regulator.
Who Receives what?:
- $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.
How to apply:
SOLE TRADERS Including Artists
There is not a lot of generosity here when looking at assistance for sole traders and those of our client base who are mostly in the creative sector:
The Sole Trader Support Fund ($100 million): This will provide Grants of up to $3,000 to over 30,000 eligible sole traders who operate from a commercial premises or location to which the sole operator is the tenant or licensee.
Although there are not a lot of details yet available, it appears to only benefit sole traders who are renting commercial premises and wouldn’t cover those many artists and small businesses with a home studio or office.
As more details become available we will inform our clients.
Watch this space...