A range of supports for Victorian businesses have been extended. For your information we have put together an overview.

Small Business COVID Hardship Fund

The Small Business COVID Hardship Fund will receive a $448 million boost, increasing the total grant amount available to small and medium-sized businesses from $14,000 to $20,000 in recognition of the impact of the lockdown extension.

Businesses that have already received a Small Business COVID Hardship Fund grant will receive an automatic top-up payment of $6000.

This program supports businesses that have been ineligible for Victorian Government business support programs since May but have experienced a reduction in revenue of at least 70 per cent. This includes businesses that are legally allowed to operate but are restricted in their ability to generate revenue.

Applications for the Small Business COVID Hardship Fund close on 10 September.

Who Can Apply?

Eligible applicants include businesses that must:

• Be located within Victoria.
• As a direct consequence of COVID-19 restrictions since 27 May 2021 have experienced a reduction in turnover of at least 70% for a minimum consecutive two-week period comparable to a benchmark period in 2019.
• Have an annual Victorian payroll of up to $10 million in 2019-20 on an ungrouped basis.
• Have been registered for Goods and Services Tax (GST) on and from 28 July 2021.
• Hold an Australian Business Number (ABN) and have held that ABN on and from 28 July 2021.
• Be registered with the responsible Federal or State regulator.

Employing businesses must also:

• Be registered with WorkSafe Victoria.
• Attest that the business is supporting its workers to access any paid leave entitlements, or that if a person can work from home, to work from home during the COVID-19 restrictions, and supporting their casual workers, where possible.

Businesses should ensure that all relevant registrations are up to date before applying for a grant under this program

Businesses that have received funding under any of the Victorian Government COVID-19 support packages launched on or after 27 May 2021 are not eligible for a grant under this program.

Businesses that have received assistance through the Business Support Fund, payroll tax rebate/waiver, or another COVID-19 program launched prior to 27 May 2021 may apply for assistance under this program.

To find additional information on the Small Business COVID Hardship Fund click here.

 

 

Commercial Tenancy Relief Scheme

The Scheme will support small to medium commercial tenants with an annual turnover under $50 million and a demonstrated decline in turnover of at least 30% due to the impact of COVID-19.

The key features of the Scheme include the following:

• Commercial landlords are required to give their tenant rent relief that:
  • Is in proportion to their tenant’s fall in turnover because of coronavirus.
  • Is made up of a minimum 50% rent waiver (the remainder can be made up of a rent deferral).
• Evictions for not paying rent will be banned until 15 January 2022 where the tenant:
  • Is a small to medium enterprise (SME).
  • Has an annual aggregate turnover under $50m (at the group level).
  • Had a minimum 30% reduction in turnover because of coronavirus.
  • Has followed the process under the Scheme for requesting rent relief from their landlord.
• There will be a freeze on rent increases until 15 January 2022.
• Fall in turnover will be calculated by comparing pre-pandemic 2019 turnover to recent turnover in 2021. Tenants can compare their turnover from any three consecutive months between 1 April and 30 September 2021 to their turnover in the same three months in 2019.
• Newer businesses that weren’t operating in 2019 will also be protected, with special arrangements in place to calculate their turnover impacts for businesses that were not operating in 2019.
• A mandatory reassessment point that enables tenants and landlords to check in with each other during the period of rent relief and assess whether circumstances have changed and rent relief should be adjusted.
• Tenants and landlords can access free mediation through the Victorian Small Business Commission (VSBC) to resolve disputes over rent relief and other disputes under the Scheme.
• Tenants can apply to the VSBC for a binding order for rent relief if their landlord fails to respond or sufficiently respond to the VSBC or doesn’t engage in mediation in good faith.

Small business tenants seeking rent relief will need to make a written request to their landlord with evidence of their eligibility.

If a tenant has already made a request and is seeking further rent relief for this extended period, then they will need to make another request to their landlord, supplying the required evidence.

The Scheme will apply retrospectively from 28 July 2021 and will run until 15 January 2022.

Who Can Apply?

Eligible applicants include small to medium commercial tenants with an annual turnover under $50 million and a demonstrated decline in turnover of at least 30% due to the impact of COVID-19.

Businesses that have been indirectly impacted by the COVID-19 pandemic, for example by lower demand or fewer customers, are also eligible, even if their operations were not closed due to restrictions.

Further information can be found here.

 

 

 

Business Cost Assistance Program and Top up Payments

Funding of up to $1.6 billion will support about 132,000 businesses across multiple sectors who were recipients of the Business Costs Assistance Program Round Two or July Extension.

Businesses throughout Victoria will receive automatic payments to cover ongoing costs such as wages, rent, utilities and insurance:

• $2800 a week for businesses with an annual payroll below $650,000.
• $5600 a week for businesses with an annual payroll between $650,000 and less than $3 million.
• $8400 for businesses with an annual payroll of $3 million to $10 million.

Businesses will remain eligible while they are unable to operate due to public health restrictions.

Businesses that did not receive a grant under the Business Costs Assistance Program Round Two or the Business Costs Assistance Program Round Two July Extension are not eligible to receive the Top-Ups.

Additional information can be found here.

 

 

Licensed Hospitality Venue Fund 2021

Up to $289 million funding will support more than 9300 premises impacted by lockdown. Licensed hospitality businesses that have previously received grants under the Licensed Hospitality Venue Fund 2021 or July Extension programs will receive automatic payments based on premises capacity:

• $5000 for a capacity of up to 99 patrons or where patron capacity is not specified.
• $10,000 for a capacity of 100 to 499 patrons.
• $20,000 for a capacity of 500 or more.

Hospitality businesses will remain eligible while they are unable to operate due to public health restrictions.

Additional information can be found here.

 

 

Alpine Support Package

Overview

This program aims to support businesses at Victoria’s six alpine resorts, Dinner Plain, and key businesses located off mountain in the surrounding towns impacted by restrictions and offer a COVIDSafe visitor experience for snowboarders and skiers.

There are two streams of funding available:

Stream 1: On-mountain and Dinner Plain businesses

1. a) Up to $98,000 per premises for employing businesses registered with WorkSafe Victoria
2. b) Up to $53,000 for businesses not registered with WorkSafe Victorian

Stream 2: Off-mountain businesses: Up to $28,000

Funding will be less any funding already received by the relevant business under the following Victorian Government COVID-19 Circuit Breaker Business Support Packages, unless funding has already been deducted from funding provided to a business under another COVID-19 Circuit Breaker Business Support Package:

• Business Costs Assistance Program Round 2 (BCAP2) including the Tourism Supplement.
• Licenced Hospitality Venue Fund 2021 (LHVF2021) including the Tourism Supplement.

The maximum deduction of funds received under these other business support programs is capped at $7,000.

Note that the Victorian Government has announced top-up funding for BCAP2 and LHVF2021. These amounts will be additional and will not be deducted from amounts received under this program.

Eligible businesses can only receive a grant for either the On-mountain or Off-mountain stream – businesses cannot receive funding from both streams.

Who Can Apply?

Eligible applicants include businesses that must:

1. On-mountain and Dinner Plain businesses

Have their primary business located within a Victorian Alpine Resort or Dinner Plain and Operate:

1. a) A food and beverage venue (restaurant, café, pub, bar or other food venue).
2. b) A retail outlet (rental, clothing, footwear, equipment, supermarket, pharmacy, gifts).
3. c) A business that provides services directly to visitors or contributes to the visitor experience (transport, activities, experiences, entertainment, health and wellbeing).
4. d) An accommodation business that also has a public on-site food and beverage venue or a retail outlet.

• Hold an Australian Business Number (ABN) and have held that ABN as at 15 July 2021.
• Have an annual Victorian payroll of up to $10 million in 2019-20 on an ungrouped basis.
• Be registered for Goods and Services Tax (GST) as of 15 July 2021.
• Be registered with the responsible federal or state regulator.

2. Off-mountain businesses

Be located within one of the following regional Local Government Areas: Alpine Shire; Mansfield Shire; Murrindindi Shire; Baw Baw Shire; East Gippsland Shire and provide:

1. a) Rental of snow equipment (including snowboards, skis, boots and clothing) for use within a Victorian Alpine Resort as the primary activity of the business.
2. b) Tours within a Victorian Alpine Resort as the primary activity of the business.
3. c) Bus transfers to, from and within a Victorian Alpine Resort.

• Hold an Australian Business Number (ABN) and have held that ABN as at 15 July 2021.
• Have an annual Victorian payroll of up to $10 million in 2019-20 on an ungrouped basis.
• Be registered for Goods and Services Tax (GST) as at 15 July 2021.
• Be registered with the responsible federal or state regulator.

Eligible Activities

Eligible activities include those that assist the business to manage the impacts of the circuit breaker lockdowns, continue operations for the 2021 winter season and to ensure COVIDSafe requirements are implemented.

Additional Information can be found here.

 

 

 

If you need assistance with understanding or applying for any of this support, please contact your Johnsons MME Advisor.