A jointly-funded support package from the Commonwealth and Victorian Governments will provide a critical four-week boost to small and medium-sized Victorian businesses most impacted by the current public health lockdown.
The unprecedented joint package of up to $2.34 billion will deliver certainty to around 175,000 Victorian businesses as the state bands together to restrict the spread of infection while the drive to vaccinate 70 per cent, then 80 per cent, of the population accelerates.
The statewide lockdown has been confirmed until 70 per cent of Victorians have had at least one dose of vaccine – estimated to be around 23 September. The four-week business support payments confirmed today cover a four-week period ending on 30 September.
The vast majority of payments will be deposited automatically into businesses’ bank accounts, while a new tiered payments system for the Business Costs Assistance Program will allow for higher payments to businesses with more workers.
Business Costs Assistance Program payments will be automatically made at rates of $2,800, $5,600 and $8,400 a week over September, depending on payroll size.
Eligible cafes, restaurants and bars will continue to receive Licensed Hospitality Venue Fund payments of between $5,000 and $20,000 per week.
A major boost to the Small Business COVID Hardship Fund will increase the grant amount to $20,000 for around 35,000 businesses, and the deadline for applications will be extended.
An Alpine Support Package will help sustain resorts through the remainder of the season and September school holidays with an automatic top-up payment of between $10,000 and $40,000, depending on business location and whether they employ staff.
Together, the Commonwealth and Victorian Governments have allocated $4.3 billion to ensure Victorian businesses can remain viable throughout lockdown, with automatic top-up payments and grants to help cover wages and overheads.
The Treasurer Josh Frydenberg said today’s announcement builds on the Morrison Government’s $45 billion in direct economic support delivered to Victorian households and business, since the start of the pandemic.
“The Morrison Government understands the significant impact extended lockdowns have on individuals and businesses right across Victoria.”
“We will continue to support Victorians, with our ongoing economic assistance to meet the challenges of the Delta strain.”
“Already, the Commonwealth has provided $1.3 billion in COVID-19 disaster payments to Victorians, supporting the incomes of around 500,000 individuals and in partnership with the State Government, committed more than $4 billion to small and medium sized businesses over course of this lockdown.”
“But there is light at the end of the tunnel. By sticking to the National Plan, agreed to by State and Territory leaders, we can safely ease restrictions and open up our economy.”
“And as we progress towards our vaccinations targets of 70 to 80 per cent, the Morrison Government will continue to work closely with the State Government to support Victorian businesses through this difficult and challenging time.”
Over the course of the pandemic, the Victorian Government has provided more than $10 billion in direct financial support for businesses, including $3.1 billion in cash grants to more than 130,000 businesses since the May/June restrictions period.
Victorian Treasurer Tim Pallas said the Victorian Government understood the importance of maintaining a genuine partnership with the state’s small and medium-sized businesses.
“Businesses of all colours and shades have shown great resilience and we’ll continue to back them as we move towards the levels of vaccination that we need in order to open up again in a sustained way,” Mr Pallas said.
“We are responding to changing circumstances with a package that is bigger than anything we’ve announced before, and it’s the right thing to do. It’s right for the dedicated business owners across the state and it’s right for their workers.”
“This package will support our hardest-hit sectors and businesses and ensure they can keep paying the expenses that don’t go away just because the doors are shut.”
Victorian Minister for Industry Support and Recovery Martin Pakula said the move to a tiered system of funding for the Business Costs Assistance Program recognised the cumulative impact of an extended period of lockdown.
“It means businesses with more workers will have greater support to maintain those numbers in coming weeks as we look to a future with high levels of vaccination and greater freedoms,” Mr Pakula said.
“These are hard yards being done right now, but the rewards will be significant. In the meantime, we’ll continue to stand by Victorian businesses and their workers.”
Details about Victorian business support payments is available at business.vic.gov.au.