Last Sunday, the 13th of September 2020, the Victorian government announced a $3 billion package to help businesses survive and keep Victorians in jobs. This policy came into effect due to the state’s extended COVID-19 lockdown, in a major push to position the economy to reopen in the coming months.
The recent support package consists of three parts:1. Business survival grants, including $1.08 billion in funding to help businesses ride out the remainder of stage four;
2. Business adaption support, including $44.2 million to assist SMEs to get back on track in the wake of the pandemic; and
3. Waivers and tax deferrals worth $1.8 billion to ease the burden on companies trying to recover in 2020-21.
While many of the programs aren’t yet open for application, and many details are still to be provided, we’ve compiled what we know so far, breaking down each aspect into its requisite parts.
Business Support Fund
The government revealed last Sunday that it will provide up to $20,000 for businesses with payrolls up to $10 million.- Businesses with payroll less than $650,000 in 2019-20 will receive $10,000;
– Businesses with payroll between $650,000 and $3 million in 2019-20 will receive $15,000; and
– Businesses with payroll between $3 million and $10 million will receive $20,000
To be eligible, businesses must be participants of the JobKeeper program, employ people registered with WorkSafe, and be registered for GST.
Sole traders without employees won’t be able to access this program.
Licensed hospitality venue grants
Licensed pubs, clubs, hotels, bars, restaurants and reception centres are now able to access up to $30,000. The new funding ( $251 million grant) will be based on venue capacity and location, but no specific details have been made available by the state government yet.
A further $4.3 million has been pledged to provide grants worth up to $20,000 to alpine businesses to help cover resort fees.
$1.8 billion waiver in taxes for Victorian businesses
The Victorian government has exempted $1.8 billionin fees and taxes in 2020-2021 to ease the burden on companies impacted by the coronavirus crisis. The bulk of this will come from $1.7 billion in payroll tax deferrals, which will run through the entirety of the 2020-21 financial year. Businesses with payrollsup to $10 million are eligible for this exemption.
Other waivers and deferrals include:-A $41 million pledge to bring forward the 50% stamp duty discount for commercial and industrial property owners;
– A $33 million deferral of a planned increase in the landfill levy for six months;
– A $30 million commitment to waive the 25% congestion levy in 2020, with outstanding balances deferred;
– Liquor license fee waivers worth $27 million for 2020; and
– A $6 million promise to waive vacant residential land tax in 2020.