Victorian small businesses say they’re being told to lodge fraudulent documents to get latest coronavirus grants

Victorian small businesses say they’re being told to lodge fraudulent documents to qualify for the latest round of government grants.

Small businesses say they are being told to lodge fraudulent documents in order to qualify for the state government’s latest round of support grants.

Amid criticism the criteria is too narrow, some businesses are refusing to apply after being advised of a workaround to qualify for support.

Select hospitality, food wholesaling, tourism, events and related services and retail businesses affected by the latest circuit breaker shutdown can apply for government support.

ANZSIC industry codes detail which businesses can apply.

Suzie Ryrie School of Dance owner Julie Anderson said dance schools were currently not eligible, but she had been advised by Business Victoria to use a different industry code to qualify.

“I told them that that solution is completely unsavoury and felt fraudulent and that if they felt that we should get the grant, then they should just add the dance schools industry code to the list and stop encouraging dance schools to do something dodgy,” she said.

Suzie Ryriew School of Dance in Berwick has needed some assistance through the pandemic Picture: Jason Edwards

Ms Anderson said she feared she risked future sanctions for lodging fraudulent paperwork, including being forced to repay any money received through the support program.

Opposition leader and small business spokesman Michael O’Brien questioned why small businesses were being forced to lie “in order to get a lifeline”.

“This is not the action of an open and transparent government,” he said.

“The Andrews Labor Government is refusing to admit its criteria for support is too narrow.

“Instead, they’d rather tell small businesses to fudge the paperwork and be deceitful, in order to get the funds they need and deserve.”

A government spokeswoman did not directly address the issues, but said applicants were “encouraged to check that their business details are up to date and reflect their current business activity prior to submitting an application”.

“The new $143 million Circuit Breaker Business Support Package builds on more than $6 billion in direct economic support provided to businesses and workers over the course of the pandemic,” she said.

The spokesman said businesses may operate across several industrial classes, but could only register one with the Australian Business Register.

The latest issue comes after battling business owners were forced to repay tens of thousands of dollars in COVID-19 grants the government had mistakenly dished out.

The state government handed out more than $3.1 million in grants that were wrongly paid to 293 licensed venues.