Institute of Certified Bookkeepers

The Victorian and Commonwealth Governments have announced a jointly funded package to support small and medium businesses through the next six weeks, at which point Victoria is expected to reach 80% vaccination.

The $2.27 billion package will support some 160,000 businesses most affected by restrictions as Victoria reaches the 70%, then 80% fully vaccinated thresholds on the state’s Roadmap to Deliver the National Plan.

This funding supports a range of businesses including retailers, gyms, hairdressers, and hotels through automatic deposits into their bank accounts.

Business Costs Assistance Program Round Five

  • $1.26 billion in funding will be delivered in automatic payments to recipients of the Business Costs Assistance Program Round Two and the July Extension in restricted industries throughout October and into the first half of November.
  • Payments will be tiered based on: 
    • $1,000 per week for non-employing businesses.
    • $2,800 per week for employing businesses with no payroll or an annual payroll below $650,000.
    • $5,600 per week for employing businesses with an annual payroll between $650,000 and less than $3 million.
    • $8,400 per week for employing businesses with an annual payroll between $3 million and $10 million.
  • Eligible recipients will be paid on a fortnightly basis. These payments are in line with Victoria’s Roadmap and thresholds for vaccination.
  • The full list of eligible ANZSIC codes for the Business Costs Assistance Program Round Five payments will be available on the Business Victoria website soon.

Licensed Hospitality Venue Fund 2021

  • More than 9,000 licensed hospitality businesses that have previously received grants under the Licensed Hospitality Venue Fund 2021 or July Extension programs will receive further automatic payments in October.
  • Between 70 and 80% double dose vaccination, payments for licensed premises in metropolitan Melbourne will be reduced by 25%, and in regional Victoria by 50%, as the economy continues to progress to greater levels of freedom.
  • Top-up payments of between $5,000 and $20,000 per week based on patron capacity will be paid fortnightly for the period from 1st October to 29th October 2021.
  • Top-up payments of between $2,500 and $15,000 per week based on location and patron capacity will cover the period from 29th October to 13th November 2021.

Small Business COVID Hardship Fund

  • $600 million has been added to the Small Business COVID Hardship Fund, taking the total program to $1.3 billion.
  • The existing $700 million funding pool has been fully subscribed and the new allocation means 65,000 businesses will now be supported with one-off grants of $20,000.
  • The Fund supports businesses that have suffered significant losses due to the pandemic, including businesses legally allowed to operate but restricted in their ability to generate revenue.

Read more about the announcement on the Business Victoria website. More information about payments will be available soon.

Business Costs Assistance Program Round Four – Construction Grants

This new funding will provide a one-off payment to eligible businesses, including sole traders, covering the restrictions period from Tuesday 21st September to Monday 4th October.

Eligible non-employing sole trader businesses will receive a one-off payment of:

  • $2000 for eligible non-employing sole trader businesses.
  • $2800 for businesses with an annual payroll of up to $650,000.
  • $5,600 for an annual payroll of $650,000 to $3 million.
  • $8,400 for an annual payroll of $3 million to $10 million.

Applications for Business Costs Assistance Program Round Four – Construction support will open in mid-October 2021.

To be eligible, businesses must:

  • Have a worksite located in metropolitan Melbourne, the City of Greater Geelong, Mitchell Shire or Surf Coast Shire.
  • Be registered under a relevant construction-sector ANZSIC codes.
  • Have a Victorian payroll of less than $10 million a year.
  • Have incurred direct costs due to restrictions.
  • Be registered for GST.
  • Have not previously received support under the Business Cost Assistance Program or the Small Business Covid Hardship Fund.

Guidelines will be published at business.vic.gov.au next week.

Over the course of the pandemic, the Victorian Government has allocated more than $11 billion in direct economic support to business, including $4.7 billion in cash grants to more than 170,000 businesses since June this year.

Victoria’s business support grants for the construction sector sit alongside the Business Costs Assistance Program, which is supporting more than 120,000 businesses most affected by lockdown in sectors ranging from retail to beauty services, tourism and events.

Commonwealth‘s COVID-19 Disaster Payments 

Until Victoria reaches 80% full vaccination, construction workers who lose hours of work due to restrictions can also access payments under the Commonwealth‘s COVID-19 Disaster Payments scheme, as can sole traders not registered for GST, who lose work and do not qualify for state support.

This payment is currently set at $450 for people who have lost from eight to 20 hours work or a full day of work – over seven days – and $750 for 20 hours or more of work lost.

More information

Read more about the announcement on the Business Victoria website.

  • 4th October, 2021
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