Businesses affected by COVID-19 in NSW, Victoria and ACT to receive final assistance package

The federal government has announced it will provide a final boost for businesses before states reach the 80% double dose target.

$2.27bn will go to three separate business grant programs, tapering off from the end of October as the state reaches the 70% vaccination rate.

The funding includes $1.26bn for the business costs assistance program, $600m for the small business Covid hardship fund, and $407m for the licensed hospitality fund.

Once the state reaches 80% and businesses “progressively and safely open”, the business support funding from the commonwealth will cease.

NSW and the ACT are projected to reach 80% by 21 October, with Victoria forecasting it will reach the target on 5 November.

Victoria

Business Costs Assistance Program Round Five

Eligible businesses will automatically receive grants ranging from $1000 to $8400 per week, rising according to payroll, until the end of October under the business costs assistance program. Businesses that have previously received or been approved for a Business Costs Assistance Program Round Two or July Extension grant will be eligible for these payments.

In November, the only businesses that will be eligible are those that “remain closed or severely restricted”.

Licensed Hospitality Venue Fund

More than 9,000 hospitality businesses will receive automatic payments of between $5,000 and $20,000 per week until the end of October, but rates will be reduced from November.

Small Business COVID Hardship Fund

 

The package will enable businesses to receive a one-off $20,000 payment.

The Fund supports businesses that have suffered significant losses due to the pandemic, including businesses legally allowed to operate but restricted in their ability to generate revenue, but have previously fallen between the cracks in terms of government support.

ACT

COVID-19 Business Support Grants

These will provide support of up to $15,000 for non-employing businesses and up to $100,000 for employing businesses who have been significantly impacted by the ongoing  lockdown in the ACT.

Businesses that have already applied  for a COVID-19 Business Support Grant will not need to reapply. The extension payment will be automatically applied if you are eligible. Businesses that have already been paid also do not need to reapply, those that are eligible will automatically receive the extension payment.

COVID-19 Small Business Hardship Scheme

Eligible small businesses will be able to apply to the ACT Government to receive credits for payroll tax, utility charges, rates and other selected fees and charges up to a maximum of $10,000 per operator.

To be eligible, applicants must demonstrate a 30 per cent loss of revenue from June quarter 2021 to September quarter 2021 and have a turnover between $30,000 and $10 million.

The COVID-19 Small Business Hardship Scheme will open in October 2021.

The COVID-19 Tourism, Accommodation Provider, Arts, Events, Hospitality and Fitness grants

This program will also be expanded. This grant program will now offer:

• $5,000 for non-employing businesses
• $8,000 for employing businesses with turnover less than $2 million
• $15,000 for employing businesses with turnover greater than $2 million and less than $5 million
• $25,000 for employing businesses with turnover greater than $5 million

ACT businesses in the fitness/sport industry, such as gyms, personal trainers and dance teachers/instructors, will now also be eligible to apply to the grants program, in recognition of the disproportionate impact the pandemic is having on these businesses.

The eligibility criteria will continue to match the eligibility criteria for the COVID-19 Business Support Grant. Further information on this grant will be made available in October.

NSW

A similar plan is expected soon for New South Wales.

On Wednesday, the NSW premier, Gladys Berejiklian, said: “I suspect we will have a much more targeted approach because the business community is so diverse, businesses range in size and what they are doing and some weathered the storm really well and have done really well and others haven’t.”

The premier said the state wanted to ensure businesses remained viable until lockdowns ended, but she was confident demand would see employment pick up rapidly once restrictions were eased.

Date published 30 Sep 2021