Victoria announces $3bn in business support, including $1.1bn for SMEs

Premier Daniel Andrews has announced a multibillion-dollar package to help businesses survive and keep Victorians in jobs.

“For our state to recover, we need our businesses to recover too. As we take our first safe and steady steps towards COVID Normal, this support will help make sure we get through this together,” said Mr Andrews.

“We’ll continue meeting with and listening to businesses, so we can do everything we can to support them and their workers.”

Over $1.1 billion in cash grants will support small and medium-sized businesses that are most affected by coronavirus restrictions, including $822 million as part of the third round of the Business Support Fund. Around 75,000 eligible businesses with payrolls up to $10 million will receive grants of $10,000, $15,000 or $20,000 depending on their size.

Bars, restaurants, pubs, clubs, hotels and reception centres will have access to a $251 million dedicated Licensed Venue Fund, with grants of between $10,000 and $30,000 for licensed venues of all shapes and sizes. The government is also providing further relief by waiving liquor licence fees for 2021.

Moreover, businesses in our alpine resorts will be able to access grants of up to $20,000 to help cover their resort fees, saving them a predicted combined $4.3 million.

The government will also 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.

To date, almost 20,000 Victorian businesses have received payroll tax refunds in the last financial year worth more than $540 million – and thousands more received a full waiver. To provide a much needed $1.7 billion cash flow boost for businesses, the government will now defer payroll tax for businesses with payrolls up to $10 million for the full 2020-21 financial year.

Building on that support, the government will also provide a further $137 million in waivers and deferrals of charges including liquor licence fees, the congestion levy and increases to the landfill levy.

The 50 per cent stamp duty discount for commercial and industrial property across all of regional Victoria will be brought forward to 1 January 2021 and the vacant residential land tax will be waived for properties that are vacant in 2020.

Recognising that businesses will need to change the way they do things, the government will also invest $44 million to equip businesses with the support they need to thrive under a COVID Normal. This includes $20 million for small businesses to access off-the-shelf digital programs such as Shopify or Squareonline, training and workshops designed to help businesses adapt to online operations.

Furthermore, Victoria is also launching a $15.7 million export recovery package to address logistics and supply chain issues caused by the pandemic, and establish new export channels. Businesses will be connected to international markets through virtual trade missions as well as assistance to adapt their export strategies to respond to the rapidly changing global market.

 “As we drive down case numbers and reach COVID Normal – we’re providing billions of dollars in support to make sure businesses make it through to COVID Normal,” said Treasurer Tim Pallas.