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Over 90,000 Victorian businesses will soon receive automatic grants worth $2,800 as the state enters its sixth lockdown. But support could have come sooner, and be better designed, critics say.
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Victoria expands business support for 6th lockdown
09 August 2021
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Victorian Premier Daniel Andrews announced a renewed partnership with the Commonwealth government on Friday that will see a further $400 million allocated to support payments for Victorian businesses under lockdown.
Of the $400 million spend, $266 million has been allocated to the state’s Business Costs Assistance Program, a new scheme rolled out on Friday, that will see businesses eligible for previous programs receive automatic payments of $2,800.
Meanwhile, businesses that were previously eligible for the Licensed Hospitality Venue Fund, and have at some stage already received support, can expect to receive new payments of between $5,000 and $20,000.
For hospitality venues, payments will be “graded” by venue capacity and set to be worth a total of $68.8 million.
The state’s Alpine Business Support Program, too, has received a top-up of $10.6 million. Eligible “off-mountain” businesses will receive payments of up to $5,000, while employing businesses operating “on-mountain” will receive up to $20,000.
Some small businesses stand to benefit as well, as $54 million was allocated to the Small Business COVID-19 Hardship Fund.
Businesses that aren’t eligible for any of the state’s other programs can expect to receive small grants of up to $8,000 if they’ve experienced a reduction in turnover of at least 70 per cent.
But setting the turnover reduction threshold at 70 per cent risks leaving a sizeable cohort of businesses behind, said CPA Australia CEO Andrew Hunter.
“Setting the threshold for decline in turnover at 70 per cent is too high in our view and certainly higher than in other states,” Mr Hunter said.
“Businesses in NSW and Queensland which experience a 30 per cent decline in turnover are eligible for support. By contrast, Victorian businesses must almost close before they qualify for this payment, which is unreasonable.”
The support could have come sooner, too, Mr Hunter said. With Victoria entering its sixth lockdown on Thursday last week, Mr Hunter said the announcement of backdated support should have come immediately.
“Businesses are not light bulbs; you can’t just switch them on and off,” Mr Hunter said.
“Victorian businesses have not had time to re-establish their cash flow and many are still rebuilding their perishable inventory. It’s frankly heartbreaking what they’re going through right now.”
Victorian Treasurer Tim Pallas said the latest instalment of support will bring his government’s pandemic-long commitment to the state’s business community up to $7 billion.
“Every step of the way since this global pandemic began, Victoria has not shirked its responsibility to back our business community — this is immediate and targeted support right now, when it is needed most,” Mr Pallas said.
Federal Treasurer Josh Frydenberg said on Friday that the Commonwealth always has and will continue to support Victorian businesses affected by lockdowns.
“Since the start of the pandemic, the federal government has delivered more than $45 billion to Victorian families and businesses to support them in their hour of need,” Mr Frydenberg said.
“On top of the $415 million in COVID-19 Disaster Payments and business support we have provided in recent weeks, we are now delivering a further $200 million in business support for Victorian business,” he said.
“This will help cushion the blow of the recent lockdown and provide hope for the future.”
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