INDUSTRY UPDATE | $3 billion support package for Victorian businesses

Premier, Treasurer and Minister Pakula announced a $3 billion support package for Victorian businesses, which brings vital funding to those in the creative industries.

by The AFC

14 September 2020

$3 billion support package for Victorian businesses

Premier, Treasurer and Minister Pakula announced a $3 billion support package for Victorian businesses on Sunday 13th September, which brings vital funding to those in the creative industries.

This includes over $1.1 billion in cash grants for small to medium sized businesses that are most affected by the coronavirus restrictions, along with a range of tax relief and cashflow support measures.

The bulk of the cash grants include:

$822 million to small and medium-sized businesses through a third iteration of the Business Support Fund (BSF). Up to $20,000 will be available for businesses that will continue to be closed or heavily restricted in the next steps of the roadmap. Critically for us, this covers creative studios, media and film production businesses, entertainment venues and others impacted.

The Government will partner with local business groups and chambers of commerce, with grants of up to $20,000 so they can help their members adapt and find their feet in a COVID Normal world. Support will also be available for small businesses to access digital programs and training to adapt to online operations.

In addition, the government will defer payroll tax for businesses with payrolls up to $10 million for the 2020-21 Financial Year, support that provides a $1.7 billion cashflow boost to businesses.

A further $137 million in waivers and deferrals of charges, including liquor licence fees, the congestion levy and increases to the landfill levy, is another important part of this package.

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Grants in this program range from $10,000 - $20,000 depending on a business’ payroll. An eligible business will receive:

$10,000 if its annual payroll is less than $650,000
$15,000 if its annual payroll is between $650,000 and $3 million
$20,000 if its payroll is between $3 million and $10 million.

Applications open on Friday 18 September, 2020. For details on eligibility and how to apply see HERE.

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You can read more about the full package: HERE

Additional details will be available at www.businesses.vic.gov.au in the hours and days ahead and applications for the Business Support Fund will open this week.

The Premier also foreshadowed a further announcement to come in relation to vital support for sole traders.