The Victorial State and Federal Government are to jointly fund a portion of $400 million to small and medium businesses under a recently announced package. This is an initiative to support the small and medium businesses due to the hard-hit caused by an unexpected lockdown. About 100,000 eligible businesses will receive this automatic payment including the sole traders, who are facing the crisis.
This funding comes in addition to the existing $400 million Victorian support package which was announced last month.
Due to the state’s sixth stay at home orders, this measure will act as a targeted support measure according to Federal Treasurer Josh Frydenberg, Victorian Treasurer Tim Pallas and Victorian Minister for Industry Support and Recovery Martin Pakula in a joint statement.
“Decisive action is required to tackle this incredibly infectious strain of the coronavirus, but we know it doesn’t come without a cost. This support will help the worst-affected businesses pay their bills and plan for a strong recovery”, said Mr.Pakula.
- From a fund of over $266 million, more than 90,000 businesses will receive automatic payments of $2,800 from the Business Costs Assistance Program Round Three grant.
- Instant automatic payments from $5,000 to $20,000 will be made by the state and federal governments to 8900 hospitality places which come under the Licensed Hospitality Venue Fund program through the three months of May, June and July lockdowns. This Is given from the fund with a capacity of $68.8 million.
- There is an extension of The Alpine Business Support Program to over $10.6 million which will offer between $5,000 and $20,000 grants to off mountain and on mountain employing businesses.
- For small businesses that are not eligible to receive funds under any of the existing programs, The Small Business COVID Hardship Fund has also received an injection of $54 million, giving grants of up to $8,000 to the small businesses. However, these small businesses are expected to show a proof of 70 per cent reduction in their turnover in order to be eligible.
- COVID-19 Disaster Payments will be provided to working employees who have lost their hours due to the lockdowns. Business not registered for GST will also be eligible for these payments. This process will be taken care through Services Australia, with Victoria covering payments in the areas that have not been declared a COVID hotspot so far.
“These grants are given to comfort the people who were hard hit financially, and to obviously provide hope for the future”, said Mr Frydenberg. He added that,“On top of the $415 million in COVID-19 Disaster Payments and business support we have provided in recent weeks, we are now delivering a further $200 million in business support for Victorian business.”
The latest round of funding adds to the $7 billion already given by the Victorian Government since the start of the pandemic, noted MR. Pallas.
In addition Mr.Pallas added that,“Every step of the way since this global pandemic began, Victoria has not shirked its responsibility to back our business community — this is immediate and targeted support right now, when it is needed most.”