Lockdown relief a ‘godsend’ for businesses still drowning in Covid debt

Up to 90,000 businesses will receive support payments this lockdown, but small biz experts say knocking back some shows a disregard for the sacrifices of others.

Angus & Bon restaurant owner Liam Ganley with $25,000 worth of food that will go to waste during this weekend’s Covid-19 lockdown. Picture: Mark Stewart

Up to 90,000 businesses that qualified for state government support during Victoria’s fourth lockdown will receive automatic payments of up to $3,000.

However thousands of businesses not registered for GST will remain ineligible for the payments.

Many businesses who had been waiting weeks for their support applications to be processed, were finally told on Thursday that they were ineligible.

But emails seen by the Herald Sun to several businesses, sent after Victoria was sent into an unprecedented fifth lockdown, failed to detail specific reasons the applications were rejected.

An estimated 22,000 applications are still being worked through more than two weeks after applications closed.

Small Business Australia executive director Bill Lang said the knock-back was a “double insult”.

“For the Victorian government to send a generic letter of this nature on day one of yet another lockdown to business owners who are under extreme stress financially and at threat of serious mental health issues is callous and shows a complete disregard for the sacrifices these business owners and their families have made for the health of the State,” he said.

“These small business families had to endure a wait of hours for the Premier to finally announce what had been widely reported through the afternoon, not discovering until 5pm whether they will be closed and how long for, all while dealing with the devastating outcomes that lockdown brings.

Thao Nguyen has had to close her nail salon and has no income for the next five days. Picture: Rob Leeson

“Having now been rejected, these businesses will struggle to gain access to any future support and for many who have reached out to Small Business Australia today they are telling us that they cannot continue in this nightmare and will walk away from all they have built and the jobs they have created in the community.”

Boutique Nails and Beauty Gisborne owner Thao Nguyen won’t have an income during the lockdown but will qualify for payments of up to $600 after the state government struck a deal with the Commonwealth to fund income support payments from day one of the lockdown.

Sunbury cafe manager Luke Hannaford described the support set up as a “godsend”.

Ganley Group director Liam Ganley, who runs three Melbourne restaurants including Prahran steakhouse Angus and Bon, said surviving repeat lockdowns was becoming “more and more difficult”.

“We’re paying our rent in full at the moment, but also last year’s deferred rent on top of it, as well as deferred payroll tax,” Mr Ganley said.

“We’re basically dealing with 150 per cent of our usual costs in a year where we’ve mostly had 50 per cent capacity in our venues.”

Mr Ganley said the pandemic had shattered his dream of expanding his business.

“We’ve weathered the storm up to now, but a decades’ work and savings have been wiped out, it’s a huge financial blow and it’s thrown out our future plans.”

Mr Andrews said the latest round of support payments – $3000 under the licensed hospitality fund and $2000 under the business cost assistance program – would be made from Monday.

But opposition leader Michael O’Brien accused the government of cutting back, with the payments $500 lower than for the previous lockdown.

“Cutting small business support for Lockdown 5 is a low act and shows that Labor couldn’t care less about Victorian small businesses and their staff,” he said.

“We need Victoria’s small businesses, we need the jobs they provide, we need the economic boost in our Covid recovery and Daniel Andrews, despite the talk, has turned his back.”

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Cafe worker Luke Hannaford is eligible for support payments. Picture: Rob Leeson

HOW TO GET A CHUNK OF THAT COVID RELIEF CASH

WHAT IS THE SUPPORT PACKAGE?

The state government will provide new cash grants for businesses affected by the latest lockdown through the Licensed Hospitality Venue Fund and the Business Costs Assistance Program.

WHAT TYPE OF BUSINESSES ARE ELIGIBLE?

Eligible businesses will include restaurants, cafes, bars, event suppliers, tourism and accommodation providers and non-essential retailers.

WHAT ABOUT SOLE TRADERS?

Sole traders can claim the funding, provided they are registered for GST.

HOW MUCH MONEY WILL I RECEIVE?

The Licensed Hospitality Venue Fund and Business Costs Assistance program will provide new support payments of $3000 and $2000 respectively.

DO I NEED TO APPLY?

No. If you received a payment during the last lockdown, you will automatically be given a top-up payment.

WHEN CAN I EXPECT TO GET PAID?

The state government said payments are “due to commence” over the course of next week.

HOW MANY BUSINESSES WILL RECEIVE SUPPORT?

Up to 90,000 businesses.

I’M AN EMPLOYEE THAT HAS LOST WORK. IS THERE SUPPORT FOR ME?

Yes. Workers affected by restrictions are now eligible for the same payments afforded by the Commonwealth to people in New South Wales.

HOW MUCH DO I GET?

Payments of $600 will be made to Victorians that lose 20 hours or more of work during the period of lockdown. Payments of $375 will be made to individuals that lose between eight to 20 hours of work.

HOW DO I APPLY FOR THE WORKER PAYMENT?

All applications can be made through the Services Australia website: www.servicesaustralia.gov.au