Victoria’s $3bn business rescue package: who is eligible?

After extending lockdowns in his state, Daniel Andrews has thrown businesses a $3bn lifeline. Here’s what we know about who is eligible.

The $3bn package announced on Sunday brings the total spent by the state government on pandemic support for business to more than $6bn. Picture: Nicole Cleary

The Andrews government has announced an “unprecedented” $3bn support package for Victorian businesses struggling to survive as lockdown restrictions grind on in the state.

Here is a breakdown of eligibility for Victoria’s third round of business support fund payments to small and medium businesses (worth $822m):

- Businesses must operate in a sector that is restricted, heavily restricted or closed and are not opening in the second step in metropolitan Melbourne and regional Victoria.

- These sectors include: accommodation, tourism operators, media and film production, creative studios, outdoor entertainment, museums and galleries, hospitality, other retail, hair and beauty services, repairs, maintenance and domestic cleaning, adult education, commercial passenger vehicles, healthcare and social assistance (private).

Grants of up to $20,000 are available for businesses with a payroll of up to $10m, including:

o $10,000 for businesses with an annual payroll of less than $650,000

o $15,000 for businesses with an annual payroll between $650,000 and $3 million

o $20,000 for businesses with an annual payroll between $3 million and $10 million

• Licensed Hospitality Business ($251 million): Grants of up to $30,000 for licensed pubs,

clubs, hotels, bars, restaurants and reception centres, based on their venue capacity and

location.

• Business Chambers and Trader Groups ($3 million): A competitive grants program to

support metropolitan and regional business chambers and trader groups.

• Alpine businesses ($4.3 million): Grants of up to $20,000 to help alpine businesses pay a

service charge to Alpine Resort Management Boards.

• $20 million voucher program to assist sole traders and small businesses in building their digital capability

• $15.7 million package to help Victorian exporters get their products to market and establish

new trade channels.

• $8.5 million expansion to the ‘Click for Vic’ campaign to encourage more Victorians to support local businesses.

Waivers and deferrals:

• $1.7 billion in payroll tax deferrals for the full 2020-21 financial year

• $41 million to bring forward the 50 per cent stamp duty discount for commercial and industrial property for all of Regional Victoria.

• $33 million to defer the planned increase in the landfill levy for six months

• $30 million to waive 25 per cent of the Congestion Levy this year, with the outstanding balance deferred.

• $27 million in liquor license fee waivers for 2021

• $6 million to waive Vacant Residential Land Tax for vacancies in 2020.

Empty Melbourne CBD. Swanston St. Picture: Jay Town

Picking up the rescue tab

The $3bn package announced on Sunday brings the total spent by the state government on pandemic support for business to more than $6bn, here’s a recap of the federal assistance Victoria has received so far:

- More than $27bn in temporary support has been paid out or credited to Victorian households and businesses from the federal government;

According to federal Treasury estimates:

- In the December and March quarters more businesses will be on JobKeeper in Victoria than the rest of the country combined. This means 60 per cent of all JobKeeper Payments will be flowing to Victoria;

- In the December quarter about $10.9 billion out of $17.9 billion in JobKeeper payments will be delivered to Victorians.

- In the March quarter about $5.9 billion out of $10.1 billion in JobKeeper payments will be delivered to Victorians.

- Treasury estimates the cost of a Victorian $300 per fortnight top-up of JobKeeper Payment to be around $2.9 billion in the December quarter - almost equal to the entire $3bn package announced by the Andrews government on Sunday.

Morrison Government support to Victoria to date:

● JobKeeper payments - $15.7 billion paid to more than 300,000 Victorian organisations

(unique ABNs) (as of 10 September)

● Boosting Cash Flow for Employers – about $6.67 billion cash flow boost credits paid to

205,476 Victorian entities (10 September)

● Coronavirus Supplement - $2.2 billion paid out to 580,000 Victorians (August)

● $750 payments - $2.2 billion paid to Victorian pensioners and other welfare payment recipients, with 1.8 million Victorians receiving at least one of the payments (14 August)

● Pandemic Leave Disaster Payment (PLDP) - paid out to 7,908 Victorians totalling around $11.7 million (3 September)

● Supporting Apprentices and Trainees - $130.2 million in payments supporting 21,847 apprentices employed by 13,352 employers in Victoria (2 September)

● Coronavirus SME Guarantee Scheme - $510 million for 5,272 loans for businesses in Victoria (14 August)