Circuit Breaker Business Support Package – applications now open

The Victorian Government has launched a business support package to assist small to medium businesses and sole traders under the circuit breaker restrictions announced on May 27, 2021.

The $371 million Circuit Breaker Business Support Package will offer support to businesses who are unable to operate due to necessary public health measures, including targeted support for the events industry.

With programs like JobKeeper no longer available, the Circuit Breaker Business Support Package is designed to help businesses throughout the circuit breaker lockdown measures.

The package covers two categories: the $70 million Licensed Hospitality Venue Fund which provides businesses with an eligible liquor licence and food certificate, and the Business Costs Assistance Program for eligible employing and non-employing businesses in sectors most impacted.

The events industry will also receive support via the $20 million Victorian Events Support Package which provides dedicated funding to operators in the events industry who have suffered losses due to the circuit-breaker restrictions.

Business Costs Assistance Program Round Two

The Business Costs Assistance Program is for eligible employing and non-employing businesses in sectors most impacted. Under the Business Costs Assistance Program eligible business with an annual payroll of up to $10 million can receive a one-off grant of $2,500 if they were subject to restrictions between May 28, 2021 and June 3, 2021, or $5,000 for businesses that were subject to further restrictions after June 3, 2021.

Applications are now open until 11:59pm Thursday, June 24, 2021. If you have separate ABNs for your business, you will be required to submit separate applications for each ABN and each ABN must satisfied the eligibility criteria.

Eligibility criteria

To be eligible, businesses must:

• Be located in Victoria
• Operate in an eligibility sector listed in the list of eligible ANZSIC classes for this program being:
  • Non-essential retail
  • Hospitality
  • Tourism
  • Events and related services
  • Health care and social assistance.
• Have incurred direct costs because of the restrictions and cannot fully operate remotely
• Have an annual Victorian payroll of up to $10 million in 2020FY on an ungrouped basis
• Currently registered for GST and registration was on or before Thursday, May 27, 2021
• Hold an ABN and have held it on or before Thursday, May 27, 2021
• If you operate in a company your ASIC registration must be current
• Be registered with the responsible federal or state regulator.

Employing business must also:

• Be registered with WorkSafe Victoria
• Attest that the business is supporting its workers to access any paid leave entitlements, or that if a person can work from home, to work from home during the circuit breaker action, and supporting their casual workers, where possible.

Businesses that receive a grant under the Licenced Hospitality Venue Fund 2021 are not eligible for this grant.

Information required to make the application

• A valid ABN for your business. The ANZSIC class will be linked to your ABN registration and will be verified to ensure you are in an eligible sector
• If you are an employing business, your WorkCover employer number (WEN) or, if this is pending, your WorkSafe Application Reference Number (WRN)
• A valid proof of identity document (e.g. Australian drivers licence, Australian passport, Medicare card, and Australian visa information and foreign passport.

Licensed Hospitality Venue Fund 2021

The $70 million Licensed Hospitality Venue Fund provides businesses with an eligible liquor licence and food certificate with a $3,500 grant per premises in reginal Victoria and $7,000 for businesses with premises in metropolitan Melbourne.

Applications for this grant can only be submitted through the link emailed by Business Victoria.

Business Victoria will commence emailing eligible liquor licensees with an eLicence from Thursday, June 3, 2021.

If you hold a liquor licenses without an eLicence email address you must set one up on the Victorian Commission for Gambling and Liquor Regulation Liquor Portal by June 20, 2021 to receive a grant application link from Business Victoria within five business days.

Eligibility criteria

Liquor licensees who have received their application form link from Business Victoria are eligible to apply.

To be eligible for a grant, an applicant must also:

• Operate a licensed bar, restaurant, pub, club, hotel, café, or reception centre that is registered to serve food and alcohol (premises) located in Victoria on May 27, 2021
• Hold a general or late night (general), full club, restaurant and cafe, producer’s or on-premises or late night (on-premises) liquor licence as of May 27, 2021
• Provide a Class 2 or 3 Service Sector Certificate of Registration under the Food Act 1984 that is valid in 2021 for serving food on the same premises
• Be registered for GST on May 27, 2021
• Hold an Australian Business Number (ABN) and have held that ABN at May 27, 2021
• Be registered with the responsible Commonwealth or Victorian regulator.

For employing businesses only, the applicant must attest that the business is supporting its workers to access any paid leave entitlements, or that if a person can work from home, to work from home during the circuit breaker action, and supporting their casual workers, where possible.

Businesses who hold a food certificate but do not hold a liquor licence are not eligible for a grant under this program. Businesses who hold a liquor licence but do not have a food certificate for the same premises are also not eligible for a grant under this program.

Businesses are only entitled to register and receive a grant from either the Business Costs Assistance Program Round Two or the Licensed Hospitality Venue Fund 2021, not both.

Information required to make the application

• A copy of the Class 2 or 3 Service Sector Certificate of Registration under the Food Act 1984 issued by the local council, which must be valid for 2021 and specify the same premises as identified on the licensee’s liquor licence
• A valid proof of identity document (e.g. Australian drivers licence, Australian passport, Medicare card, and Australian Visa information and foreign passport.

Other support measures for Victorian businesses

There are a few other measures currently in place to support Victorian businesses, including:

• New Jobs Tax Credit: As part of the Victorian budget 2021-22, the New Jobs Tax Credit was established to support small and medium businesses to rehire staff, restore hours, and create new jobs. Under the program, where businesses increase employment, they receive a 10c credit per additional dollar of wages spent against payroll tax.
• Payroll tax waiver: Employers with Victorian payrolls up to $10 million, based on their 2019-20 financial year annual reconciliation returns, can defer their 2020-21 payroll tax liability until the 2021-22 financial year. More information here.
• Click for Vic: A website and campaign to encourage Victorians to buy produce, gifts, and fashion from local businesses will be supported through marketing, advertising, publicity and partnerships. Click for Vic is all about encouraging consumers to support Victorian businesses and to buy online while travel restrictions remain in place. Find out how your business can get involved here.

Need tax or business advice?

If you need help navigating new business support packages or tax incentives, or if you’d simply like business advice during these changing times, speak to one of our experts.

LDB has a team of trusted tax advisors, real estate and property specialists, and business advisory experts that can guide you on a range of matters. Give us a call on (03) 9875 2900 or fill in the contact form below.