Financial support for Victorian businesses on road to COVID normal
The Victorian government has launched a new package of financial assistance to help businesses throughout the current COVID-19 restrictions.
The state government announced a raft of new support measures on September 13 and 14, with Premier Daniel Andrews stating that businesses needed further support for the state to recover.
Here is a guide to the latest round of financial assistance for businesses in Victoria:
Business support fund – round three
The state government announced a third round for the business support fund to provide further assistance to businesses affected by the COVID-19 restrictions in Victoria.
Under the third round of support, 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.
To be eligible, your business must:
- operate 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 the 2020 financial year; and
- be registered for GST (goods and services tax); and
- hold an ABN (Australian Business Number); and
- be registered with the responsible federal or state regulator.
Applications will be open on Friday, September 18 and you can apply via the Business Victoria website.
The government will defer payroll tax for the 2021 financial year for businesses with payrolls of up to $10 million.
Land tax and stamp duties
The 50 per cent stamp duty discount for commercial and industrial properties across regional Victoria will be brought forward to January 1, 2021.
The vacant residential land tax will be waived for properties that are vacant in 2020.
Sole trader support fund
The sole trader support fund is a Victorian government initiative, providing $3,000 grants to eligible sole traders.
To be eligible for the grant, sole traders must be a tenant or licensee in a commercial premises or location, and operate in a sector of the economy that is restricted, heavily restricted or not operating under the second step of the roadmap.
A new $251 million licensed venue fund has been established to support bars, restaurants, pubs, clubs, hotels, and reception centres.
There are cash grants of between $10,000 and $25,000 for licensed venues in regional Victoria, and grants from $15,000 to $30,000 for licensed venues in metropolitan Melbourne.
The state government announced an outdoor eating and entertainment package to support licensed and unlicensed bars and restaurants outside of Melbourne’s CBD.
Businesses with payroll under $3 million can apply for grants of up to $5,000 to cover the cost of outdoor furniture, umbrellas, and screens.
An additional $30 million will be allocated to local councils to assist with new permits that are required to expand outdoor hospitality.
For businesses in the Melbourne CBD, the City of Melbourne and the state government have created the Melbourne City Recovery Fund.
The $30 million fund will help bars, restaurants and events in Melbourne CBD to move outdoors, offering grants to small and medium-sized businesses to pay for equipment, remodel internal spaces, and convert outdoor spaces.
The Victorian government has also waived liquor license fees for 2021.
Other business support measures in Victoria
The state government announced other support measures to business and landlords, including:
- Grants of up to $20,000 to local business groups and chambers of commerce to help their members adapt to the new COVID normal world
- Further waivers and deferrals of charges for the congestion levy and increases to the landfill levy
- A $44 million investment to equip businesses with the support they need, including $20 million for access to off-the-shelf digital programs like Shopify, as well as digital training and workshops
- Grants of up to $20,000 to help Victorian ski field operators pay their resort fees
- A new website, Click for Vic, to promote local fresh food, wine, galleries, and homeware businesses via marketing and advertising
- A $15.7 million export recovery package connecting affected businesses to international markets via virtual trade missions.
How the new Victorian support measures impact your business
If you have questions about the new support measures and how they impact your business, speak to one of our advisors at LDB Group.
Please get in touch by calling (03) 9875 2900 or send us your details via the contact form below.