Business support payment available in Victoria

Businesses that successfully applied for the Business Costs Assistance Program Round Two (from the May/June 2021 lockdown) will automatically receive a top-up payment of $4800 plus an additional $2800 for the August lockdown. 

Businesses that are eligible for this program will also receive an additional:

• $5000 if they remain impacted by capacity limits from 28 July, including gyms, cafes, restaurants and hairdressers
• $2000 if they are in the Melbourne CBD. 

Businesses that successfully applied for the Licensed Hospitality Venue Fund 2021 (from the May/June 2021 lockdown) will automatically receive a grant of $5000 to $20,000. Larger venues will receive the higher amount. Eligible venues in the Melbourne CBD will receive an additional $2000.

Businesses that didn't previously apply or have become eligible to apply for the Business Cost Assistance Program or the Licensed Hospitality Venue Fund 2021 have until 13 August to apply.

Businesses not eligible for the any existing Victorian Government COVID-related grants, will be eligible for grants of up to $5000. To be eligible, they must also have a payroll of up to $10 million and experienced a 70 per cent or greater decline in revenue.

Micro businesses that aren't eligible for state government business support payments because they're not registered for GST can apply to Services Australia for the COVID-19 Disaster Payment. The Victorian Government will establish a concierge service to help these businesses access this support.

There is also additional financial support for Alpine businesses, public event organisers and suppliers and live performers and their suppliers.

Commercial tenancy relief

Commercial landlords in Victoria will be required to provide rent relief that matches their tenants’ fall in turnover where the tenant has an annual turnover under $50 million and has experienced a decline in turnover of at least 30 per cent from the final quarter of 2020-21 compared with the final quarter of 2018-19 (special arrangements will be put in place for those not in business in June 2019).  The Commercial Tenancy Relief Scheme applies from 28 July 2021.

Tenants and landlords will be encouraged to enter negotiations directly. The Victorian Small Business Commission (VSBC) will be available to provide mediation if parties cannot reach satisfactory agreement. Landlords will not be able to lock out or evict tenants without a determination from the VSBC.

A hardship fund for landlords will also be established to assist those who provide rent relief to eligible tenants. Details to be released shortly. Landlords will be eligible for a 25 per cent reduction in their land tax.

Please contact your local TaxAssist Accountant for help and advice with any of the above.

Date published 10 Aug 2021