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Additional Support Announced for Victorian Businesses

alfcouceiro_img2
Published by:
Alf Couceiro
Published on:
July 30, 2021
Additional Support Announced for Victorian Businesses

On 28 July 2021, the Federal Government and the Victorian Government announced additional support that will be available as a result of ongoing density restrictions in Victoria.

The total support package announced is for $400M and the following particular support funds were announced:

Business Continuity Fund

The fund will provide grants of $5,000 for eligible businesses that operate in designated industries and who continue to be impacted by density limit quotas imposed by the State Government.  Those eligible businesses operating in the CBD will be eligible for an additional $2,000 payment.

In the press release, the Victorian Government specifically mention gyms, cafes, restaurants, event businesses, catering services and hairdressers as businesses impacted by density quotas.

To be eligible to receive the grant, the particular business must have been eligible to receive a grant under the Business Costs Assistance Program (round 2).  The eligibility criteria for that grant were:

  • The business must be located within Victoria.
  • The business must be registered as operating in an eligible industry sector identified in the List of Eligible ANZSIC classes
  • The business must have incurred direct costs as a result of the circuit breaker action and the business cannot predominantly operate remotely.
  • The business must have an annual Victorian payroll of up to $10 million in 2019-20 on an ungrouped basis.
  • The business must be registered for Goods and Services Tax (GST) on 27 May 2021.
  • The business must hold an Australian Business Number (ABN) and have held that ABN at 27 May 2021.

Applications for the grant are not yet open.  Further details will be released shortly.

Licensed Hospitability Venue Fund

The Government has announced that grants of up to $20,000 will be available to licensed venues.  An additional $2,000 will be available to venues operating in the CBD.

To be eligible for the grant, the business must have previously been eligible for the Licensed Hospitality Venue Fund introduced during the May/June 2021 restrictions.  The criteria for that fund were:

  • The businesses must operate a licensed bar, restaurant, pub, club, hotel, cafe or reception centre that is registered to serve food and alcohol (Premises) located in Victoria on 27 May 2021.
  • The businesses 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 27 May 2021.
  • There must be a food business (which may be a third party or the Applicant) holding a Class 2 or 3 Service Sector Certificate of Registration that is valid in 2021 under the Food Act 1984 which serves food on the same Premises.
  • The businesses must be registered for Goods and Services Tax (GST) on 27 May 2021.
  • The businesses must hold an Australian Business Number (ABN) and have held that ABN at 27 May 2021.

Applications for the grant are not yet open.  Further details will be released shortly.

Small Business COVID Hardship Fund

Small Businesses with payroll of under $10M who have experienced a reduction of at least 70% in turnover will be eligible for a grant of $5,000.  Further details of this grant will be released shortly.

Alpine Business Support Program

Grants of between $5,000-$20,000 will be made available to Alpine based businesses.  Further details of this grant will be released shortly.

Commercial Tenancy Relief Scheme

The Government has announced that the Commercial Tenancy Relief Scheme will be reintroduced with new legislation.  The scheme is designed to provide rent relief (consisting of rent reduction and rent deferral) for those businesses that have experienced a reduction of at least 30% of their turnover due to COVID.  The scheme will provide proportional rent relief such that if the turnover of the business has fallen by say 40%, rent relief of 40% would be available under the scheme.  The scheme will also provide separate support for landlords.

Need help?

Applying for your support grant can be daunting. If you’re feeling overwhelmed about your grant application or want help to prepare needed documents, we can assist.

Our Modoras professionals can help you confirm your eligibility for assistance, prepare your funding application, or offer guidance and advice.

Simply call us on 1300 8888 803 or book an appointment with a Modoras professional. We’ll take care of you.

Need help on processing your covid-19 support grants? The Modoras team is here.

IMPORTANT INFORMATION: This blog has been prepared by Modoras Accounting (VIC) Pty Ltd ACN 145 368 850. The information and opinions contained in this blog is general information only and is not intended to represent specific personal advice (Accounting, taxation, financial, insurance or credit). No individuals’ personal circumstances have been taken into consideration for the preparation of this material. The information and opinions herein do not constitute any recommendation to purchase, sell or hold any particular financial product. Modoras Accounting (VIC) Pty. Ltd. recommends that no financial product or financial service be acquired or disposed of or financial strategy adopted without you first obtaining professional personal financial advice suitable and appropriate to your own personal needs, objectives, goals and circumstances. Information, forecasts and opinions contained in this blog can change without notice. Modoras Accounting (VIC) Pty. Ltd. does not guarantee the accuracy of the information at any particular time. Although care has been exercised in compiling the information contained within, Modoras Accounting (VIC) Pty. Ltd. does not warrant that the articles within are free from errors, inaccuracies or omissions. To the extent permissible by law, neither Modoras Accounting (VIC) Pty. Ltd. nor its employees, representatives or agents (including associated and affiliated companies) accept liability for loss or damages incurred as a result of a person acting in reliance of this publication. Liability limited by a scheme approved under Professional Standards Legislation.

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