On 28 July 2021 the Victorian Government announced a $400 million support package, jointly funded by the Commonwealth Government. The package is designed to provide support to Victorian small and medium businesses experiencing financial hardship from the recent lockdown.

On 6 August 2021 the Victorian Government announced additional payments for previous recipients of the Business Costs Assistance Program Round Two and Round Two July Extension.

Further support was announced on 12 August 2021.

The various support measures are outlined below.

Business Costs Assistance Program Round Two – July Extension – Applications close 13 August 2021

The Victorian Government's Business Costs Assistance Program Round Two July Extension gives eligible businesses that had not previously applied for the Program in June, or have since become eligible, with the opportunity to apply for the equivalent of the July Top-Up Payments.

To be eligible for the Program, a business must:

  1. Be located within Victoria; and
  2. Be registered as operating in an eligible industry sector, including:
    • Non-essential retail
    • Hospitality
    • Tourism
    • Transport
    • Events and related services
    • Services and education
    • Health care and social assistance
  1. Have incurred direct costs as a result of the July COVID-19 Restrictions and the business cannot predominantly operate remotely; and
  2. Have an annual Victorian payroll of up to $10 million in 2019-20 on an ungrouped basis; and
  3. Be registered for Goods and Services Tax (GST) on 15 July 2021; and
  4. Hold an Australian Business Number (ABN) and have held that ABN on and from 15 July 2021; and
  5. Be registered with the responsible Federal or State regulator.

Employing businesses must also be registered with WorkSafe Victoria and attest that the business is supporting its workers to access any paid leave entitlements, allowing staff to work from home where viable, and supporting their casual workers where possible. Eligible businesses will receive a grant of $4,800.

Applications close on 13 August 2021.

Business Costs Assistance Program Round Three – Automatic Payment

The Business Costs Assistance Program Round Three provides support to eligible small to medium businesses in sectors affected by the current restrictions in metropolitan and regional Victoria.

Successful recipients of the Business Costs Assistance Program Round Two or the Business Costs Assistance Program Round Two July Extension will receive an additional $2,800.

Payments will be automatic.

Additional Business Costs Assistance Program payments

On 12 August 2021 additional payments of $2,800 under the Business Costs Assistance Program were announced. These are scheduled to be paid within 7 business days.

Licensed Hospitality Venue Fund 2021 - Automatic Payment

New payments of $5,000 to $20,000 will be made to more than 8,900 hospitality venues across Victoria. Businesses will receive a payment if they previously received funding support from the Licensed Hospitality Venue Fund through the May / June and July lockdowns.

Payments will be automatic and graded by venue capacity.

Licensed Hospitality Venue Fund 2021 – July Extension - Applications close 13 August 2021

The Licensed Hospitality Venue Fund 2021 July Extension provides eligible businesses that did not apply for the program in June 2021 with the opportunity to apply for $7,200 in support.

To be eligible:

  • Your business must operate a licensed bar, restaurant, pub, club, hotel, cafe or reception centre that is registered to serve food and alcohol;
  • Your business must 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 at 15 July 2021;
  • You must provide a Class 2 or 3 Service Sector Certificate of Registration that is valid in 2020 or 2021 for the same premises; and
  • Your business must not have received a grant from the Business Costs Assistance Program Round Two, Business Costs Assistance Program Round Two July Extension, or the Licensed Hospitality Venue Fund 2021.

Eligible businesses will receive a grant of $7,200.

Applications close on 13 August 2021. Eligible liquor licensees with an eLicence email address registered with the Victorian Commission for Gambling and Liquor Regulation (VCGLR) will receive an email containing their grant application link from Business Victoria.

Additional Licensed Hospitality Venue Fund payments

On 12 August 2021 it was announced that automatic payments of $5,000, $10,000 and $20,000 will be made to licenced hospitality venues in metropolitan Melbourne that have previously received or been approved for grants under the Licenced Hospitality Venue Fund program.

Payment amounts will be tiered according to capacity: $5,000 for capacity of up to 99 patrons, $10,000 for a capacity between 100 and 499 patrons and $20,000 for a capacity of 500 or more.

Business Continuity Fund - Automatic Payment

Recipients of the Business Costs Assistance Program Round Two and the Business Costs Assistance Program Round Two July Extension who are in 24 sectors that were affected by capacity limits when reopening in late July 2021 under COVID-19 restrictions will receive a $5,000 payment, e.g. gyms, restaurants and hairdressers.

The Victorian Government also announced that businesses in Melbourne's CBD that receive a Business Continuity Fund payment will receive an additional $2,000 payment.

Recipients will be contacted from mid-August to confirm they will receive a payment. Business Continuity Fund payments will be processed automatically.

Alpine Resorts Winter Support Program – Applications close 20 August 2021

Stream 1: On-mountain and Dinner Plain businesses

Eligible businesses must operate in one of the following categories:

  • A food and beverage venue (restaurant, café, pub, bar or other food venue);
  • A retail outlet (rental, clothing, footwear, equipment, supermarket, pharmacy, gifts);
  • A business providing services directly to visitors or contributes to the visitor experience (transport, activities, entertainment, health and wellbeing); or
  • An accommodation business with a public on-site food and beverage venue or retail outlet.

Eligible businesses can only receive a grant for either the On-mountain or Off-mountain stream – businesses cannot receive funding from both streams.

Eligible businesses will receive a grant of:

  • Up to $58,000 per premises for employing businesses (registered with WorkSafe Victoria); or
  • Up to $33,000 for businesses not registered with WorkSafe Victoria.

Eligible businesses that have already received support under the Victorian Government's Business Costs Assistance Program Round Two (including the Tourism Supplement) and Licensed Hospitality Venue Fund 2021 (including the Tourism Supplement) will receive funding under this program up to the total amounts set out above.

Such businesses will also receive the Business Cost Assistance Program Round Three payment, the Business Continuity Fund (if eligible) and the top-up payments for the Business Cost Assistance Program Round Two and Licenced Hospitality Venue Fund 2021.

Applications close on 20 August 2021.

Stream 2: Off-mountain businesses

To be eligible for support under the program's Off-mountain stream, businesses must:

  • Be located within one of the following Local Government Areas:
    • Alpine Shire;
    • Mansfield Shire;
    • Murrindindi Shire;
    • Baw Baw Shire; or
    • East Gippsland Shire.
  • Provide, as primary activity of the business, one of the following:
    • Rental of snow equipment (including snowboards, skis, boots and clothing) for use within a Victorian alpine resort;
    • Winter tours within a Victorian alpine resort; or
    • Bus transfers to, from and within a Victorian alpine resort.

Funding will be up to $18,000. Eligible businesses that have already received support under the Victorian Government's Business Costs Assistance Program Round Two (including the Tourism Supplement) and Licensed Hospitality Venue Fund 2021 (including the Tourism Supplement) will receive funding under this program to take them to $18,000.

Such businesses will also receive the Business Cost Assistance Program Round Three payment, the Business Continuity Fund (if eligible) and the top-up payments for the Business Cost Assistance Program Round Two and Licenced Hospitality Venue Fund 2021.

Applications close on 20 August 2021.

Commercial Tenancy Relief Scheme and Landlord Hardship Fund

The Commercial Tenancy Relief Scheme and Landlord Hardship Fund will make it a requirement for all commercial landlords to assist eligible businesses who have a serious trading downturn outside of their control.

In summary:

  • The Scheme is available to business with less than $50 million in turnover suffering a COVID-19 related decline of at least 30%;
  • Landlords will have to provide proportional rent relief in line with the reduction in turnover, e.g. turnover of 40% of pre-pandemic levels means only 40% of its rent can be charged;
  • The Victorian Small Business Commission (VSBC) is available to provide mediation if parties cannot reach an agreement;
  • Landlords will be unable to lock out or evict tenants without a determination by the VSBC.
  • An $80 million Hardship Fund for landlords who provide rent relief to eligible tenants will be available.

Legislation to enact the Scheme has been enacted and will apply retrospectively from 28 July 2021. The Scheme will operate until 15 January 2022.

Small Business COVID Hardship Fund – Applications open from 12 August 2021

Grants of up to $10,000 will be made available to small businesses with a payroll of up to $10 million who have experienced a 70% or greater reduction in revenue.

The fund will support small businesses who have not been eligible under existing business support funds.

COVID-19 Disaster Payments

Sole-trader businesses who lose work due to the current lockdown and do not qualify for other Victorian Government support programs will be able to access the Commonwealth's COVID-19 Disaster Payment (as are eligible workers who have lost work hours due to the lockdown).

The COVID-19 Disaster Payment is administered through Services Australia. The payment is set at $450 for people who have lost from eight and up to 20 hours work or a full day of work (over seven days), and $750 for 20 hours or more of work lost. People who receive certain Commonwealth income support are eligible to receive a $200 payment.

The material contained in this publication is in the nature of general comment and information only and is not advice. The material should not be relied upon. Please contact your local Moore Australia office to discuss your specific circumstances or case. Moore Australia, any Australian Member, any related entity of those persons, or any of their officers employees or representatives, will not be liable for any loss or damage arising out of or in connection with the material contained in this publication.