A range of government support packages have been put in place for Victorian businesses & individuals impacted by the latest COVID-19 lockdowns:
- The Business Costs Assistance Program Round Two July Extension.
- The Business Costs Assistance Program Round Three.
- The Small Business COVID Hardship Fund.
- The Commercial Tenancy Relief Scheme.
- The Licensed Hospitality Venue Fund July Extension.
- The Alpine Resorts Winter Support Program.
- COVID-19 Disaster Payment (Centrelink)
We will look at each of these financial support packages in turn.
Business Costs Assistance Program Round Two July Extension
This extension provides eligible businesses with a grant of $4,800.
The grant is available up until midnight on 13 August 2021, or until the Round Two July extension funds are exhausted, whichever occurs first.
Round Two July extension eligibility
The Round Two July extension is only available to eligible businesses who did not receive any assistance from the Business Costs Assistance Program Round Two in June of this year. Those businesses will receive an automatic top-up payment of $4,800 instead.
In addition to this requirement, eligible businesses must:
- be located in Victoria.
- be operating in one of the following broad industry sectors – non-essential retail, hospitality, tourism, transport, events and related services, services and education, health care and social assistance.
- have incurred business costs during the July 2021 COVID-19 restriction period.
- be incapable of fully operating remotely.
- have an annual payroll less than $10 million.
- have been registered for GST and had an ABN prior to the restrictions being put in place.
- be registered with the relevant industry regulator (for example, WorkSafe Victoria).
If your business was able to partially operate remotely during the July COVID-19 restrictions, then you may still be eligible for the July extension grant. For example, if you run a restaurant and you were only able to supply take-away orders rather than both dine-in and takeaway.
In addition, if you previously applied for the Business Costs Assistance Program prior to July this year but didn’t receive a grant, you can reapply for the July extension if you now meet the eligibility requirements.
How to apply for the Business Costs Assistance Program Round Two July extension
You can apply for the $4,800 grant available via the Business Victoria website. As part of the application process you will need to supply:
- your ABN,
- proof of identity documents, and
- your WorkCover Employer Number if your business employs people.
Applications are normally processed within 10 business days.
Ineligible businesses
If your business continued to operate (or you were able to work from home during the July restrictions), then you are ineligible for the July extension grant. Examples could be businesses in the following sectors:
- essential retailers like supermarkets and pharmacies
- manufacturing
- construction services
- mining
- agriculture, forestry and fishing operations
- professional service providers (with some limited exceptions).
In addition, if your business has received a grant under the Licensed Hospitality Venue Fund, you will not be eligible for the Business Costs Assistance Program Round Two or the July extension.
Business Costs Assistance Program Round Three
Round Three provides eligible businesses with a grant of $2,800.
This grant is available up until midnight on 13 August 2021, or until Round Three funds are exhausted, whichever occurs first.
Round Three eligibility
Businesses who received a payment (or who have applied and are eligible to receive a payment) under the criteria for the Business Costs Assistance Program Round Two July extension will automatically receive the Round Three payment. There is no need to formally apply.
Small Business COVID Hardship Fund
The Small Business COVID Hardship Fund provides $10,000 grants to eligible Victorian businesses. Both employing and non-employing businesses are eligible if they meet the criteria outlined below.
Eligibility for the Small Business COVID-19 Hardship Fund
Eligible business must:
- be located in Victoria.
- have had a decline in turnover of at least 70% between May and August this year while COVID-19 restrictions have been in place.
- have an annual payroll less than $10 million.
- be registered for GST and the holder of an ABN prior to 28 July 2021.
- be registered with a relevant Federal or State authority (e.g. WorkSafe Victoria).
- be incapable of fully operating remotely.
- not have received any funding from any other Victorian government COVID-19 support package since May 2021.
Commercial Tenancy Relief Scheme
The Commercial Tenancy Relief Scheme that was in place in 2020 has been reintroduced due to the latest lockdowns. It requires Victoria’s commercial landlords to provide rent relief to their tenants that matches their decline in turnover.
For example, if a tenant has suffered a 50% loss in turnover since the latest restrictions were put in place, their landlord must offer 50% rent relief. At least half of this rent relief must be a waiver of rent owing. The remaining amount owing must be deferred.
Eligibility for the Commercial Tenancy Relief Scheme
To be eligible for the Scheme, Victorian businesses must have:
- an annual turnover of less than $50 million, and
- had a fall in turnover of at least 30%.
Both tenants and landlords are expected to negotiate rent payment deferral agreements in good faith. If agreement cannot be reached, either party can apply to the Victorian Small Business Commission for mediation.
The Licensed Hospitality Venue Fund July Extension
This is a grant of $7,200 for businesses that did not receive a prior payment in 2021 from the Licensed Hospitality Venue Fund.
The Alpine Resorts Winter Support Program
This Program provides eligible businesses with grants of between $5,000 and $20,000 depending on their specific circumstances.
COVID-19 Disaster Payment (Centrelink)
This is a weekly payment for individuals not getting any other Centrelink payment or Sole Traders not receiving Grants from their State Government. The rules vary slightly depending on the State of Australia the individual is in. But for Victoria – you need to be an Australian Resident, aged over 17 years, not in receipt of a Centrelink income support payment or paid parental leave, you haven’t received a Pandemic Leave payment or State Government Grant, you also need to have not received any paid leave entitlements during the fortnightly claim period. Payments are only available to those who have lost 8 hours or more or a full day’s work in any given week. Payments for Victorians are as follows:
- $450 per week for people who have lost a day of work up to 20 hours work that week
- $750 per week for people who have lost 20 hours or more work that week
How we can help
Our experienced team of business accountants at Wilson Pateras in Richmond can help your business through these challenging times. We are a full-service accounting firm. In addition to business accounting, our other business services include tax planning and bookkeeping.
We also help individuals with financial planning, personal insurance, retirement planning, self-managed super funds (SMSFs) and tax planning.
Contact us today to find out how we can help you or your business.
