Both the Federal government and Victorian State government have introduced a number of cash flow measures to help Victorian businesses survive the financial impact of the COVID-19 restrictions. Federal initiatives covered in our earlier articles include the JobKeeper program and Cash Flow Boost payments.
In addition, the Victorian government has introduced a number of small business grants and initiatives.
- the Business Support Fund – Expansion Grant.
- the Hospitality Business Grant.
- the CBD Small Hospitality Grant.
- the Night-Time Economy Business Support Initiative.
We’ll look at each of these programs in turn in this article.
Business Support Fund – Expansion Grant
This grant was originally only available until June 1 but its availability has been extended until 14 September this year following the second Victorian COVID-19 lockdown.
How much is available?
The amount you can get if you are eligible depends on where your business is located:
- $10,000 is available for business in metropolitan Melbourne and Mitchell Shire.
- $5,000 is available in regional local government areas (except Mitchell Shire).
Eligibility requirements
To be eligible for the Business Support Fund – Expansion Grant, you must meet the following 7 requirements.
- Operating a business within Victoria.
- Participating in the federal government’s JobKeeper program.
- Employing people and registered with WorkSafe on 30 June, 2020.
- Annual payroll of less than $3 million in the 2019/2020 financial year.
- Registered for GST on 30 June 2020.
- Held an Australian Business Number (ABN) at 30 June, 2020.
- Registered with a relevant Federal or State regulator.
How to apply
If your business received the first round of the Business Support Fund – Expansion Grant before June 1, you do not need to re-apply. It will be automatically sent to you. If you weren’t eligible (or you didn’t apply) for the first round of the Grant and your business is now eligible, you can apply through the Department of Jobs, Precincts and Regions.
The Hospitality Grant
This grant is a one-off payment for food service businesses in the Melbourne CBD.
How much is available?
The amount you can get depends on how many outlets your food service business has and where it is located.
- $25,000 is available plus $5,000 for each additional outlet in metropolitan Melbourne or the Mitchell Shire (up to a maximum of $20,000 for additional outlets).
- An additional $20,000 is available to businesses located in the following Melbourne CBD postcodes: 3000 (Melbourne), 3005 (World Trade Centre), 3006 (Southbank), 3008 (Docklands).
Eligibility requirements
To be eligible for the Hospitality Grant, your business must meet seven requirements.
- Premises located in Victoria.
- Operating a restaurant, café, pub, bar, club, reception centre, coffee and dessert outlet or a takeaway food venue and holding a Class 2 or 3 Service Sector Certificate of Registration under the Food Act 1984 (Vic).
- An annual payroll of between $3 million and $10 million for the 2019/2020 financial year.
- Registered for the GST on 30 June 2020.
- Held an ABN at 30 June, 2020.
- Registered with the relevant Federal or State regulator.
- Not received funding under the Victorian Live Music Venues Program (applications have closed) or the Business Support Fund – Extension Grant.
How to apply
You can apply for the Hospitality Business Grant through the Department of Jobs, Precincts and Regions.
The CBD Small Hospitality Grant
This grant is a one-off payment designed for small to medium-sized hospitality businesses in the Melbourne CBD.
How much is available?
The amount you can get if you are eligible depends on the size of your business:
- $5,000 is available for businesses that have a seating capacity of 11 to 100 people.
- $15,000 is available for those that have a seating capacity of 101 or more.
Eligibility requirements
You must meet five requirements to be eligible for the CBD Small Hospitality Grant.
- Already received (or be eligible for) a Business Support Fund – Expansion Grant.
- Operating a business within the following Melbourne CBD postcodes: 3000 (Melbourne), 3005 (World Trade centre), 3006 (Southbank), 3008 (Docklands).
- Operating a restaurant, café, pub, bar, reception centre, coffee or desert outlet with a seating capacity of at least 11 people.
- Hold a Class 2 or 3 Service Sector Certificate of Registration under the Food Act 1984 (Vic.)
- Not received any funding assistance through either the Night-time Economy Business Support Initiative or the Victorian Live Music Venues Program.
How to apply
You will be contacted to apply for the CBD Small Hospitality Grant if you have received (or are eligible for) the Business Support Fund Expansion Grant. Once you have been contacted (not before), you can apply through the Department of Jobs, Precincts and Regions.
Night-Time Economy Business Support Initiative
This initiative supports licensed pubs, clubs and restaurants that have leasing issues.
How much is available?
The amount of funds available depends on your issue:
- Up to $20,000 for expenses associated with getting tenancy advice since March 29, 2020.
- Commercial rent relief of up to $150,000.
Eligibility requirements
You must meet six requirements to be eligible for the Night-time Economy Business Support Initiative.
- Operate licensed pubs, clubs or restaurants on tenanted premises.
- Employ staff.
- An annual turnover less than $50 million.
- Held an ABN at 16 March, 2020.
- Were operating in tenanted premises on 16 March, 2020.
- Have had a reduction in turnover of at least 30% since 16 March, 2020.
How to apply
You must first register your interest in this initiative through the following link. A staff member from the Department of Jobs, Precincts and Regions will then contact you to discuss your situation and potentially invite you to submit an application.
How we can help
Our experienced team of advisors at Wilson Pateras in Richmond can help you navigate your business cash flow during these tough times. Our business services include accounting and tax, bookkeeping and tax planning. We will provide you with cash flow advice and the information you need to make smart business decisions.
Contact us today for a complimentary, obligation-free consultation to find out how we can help you!
