$3bn of additional stimulus announced for Victorian businesses

The Andrews Government has unveiled its latest round of business support as Victorian businesses take their first step on the road to ‘COVID normal’.

Premier Daniel Andrews has announced what he called the “biggest package of support” in the state’s history, which will see his government invest a further $3 billion into the Victorian economy.

Key takeaways:

• Victorian businesses can access up to $20,000 in cash grant payments
• Targeted support will be offered to hospitality, entertainment and alpine resorts
• Vouchers and upskilling will be available to help businesses take their offering online
• 2021 financial year payroll tax will be deferred, and other fees and levies to be waived

The record-breaking package, which brings the State Government’s support tally up to $6 billion in total, is set to offer businesses assistance in the form of a variety of cash grants, long-term support, and continued relief from a series of taxes and levies.

“We’ve never seen anything like this before,” Andrews told reporters during his daily press conference on Sunday.

“It’s an unprecedented challenge that businesses face.”

The announcement of this stimulus comes a week after the Premier outlined the state’s 5-step roadmap to ‘COVID normal’, proposing an incremental easing of social and economic restrictions.

Here is an overview of what support is set to be made available, and how it will be administered:

$1.1 billion in cash grants for affected businesses

With most economic restrictions remaining in place for (at least) another six weeks, the Victorian government is offering grant payments of up to $20,000 for business with payrolls of up to $10 million in value.

These payments will be administered through the state’s existing Business Support Fund and will be open for application from Friday 18 September.

In addition to these payments, cash grants of up to $30,000 in value will be available to targeted industries that the state considers to be uniquely affected, including hospitality, entertainment and alpine resorts.

$43 million of long-term business support

A significant portion of the stimulus that was announced on Sunday will be focussed on giving Victorian businesses a push forward as the economy does reopen in the coming months and into 2021.

This component of the package will aid those businesses in need of support in building and maintaining online businesses. It will give them access to vouchers to purchase off the shelf software products, and training programs to help them upskill their digital capabilities.

The state government will also be using these funds to give additional support to the Victorian export market, with a specific focus on supply chain and logistics areas that have been impacted by COVID-19.

$1.8 billion in payroll tax and levy relief

In addition to the $540 million in payroll tax refunds that the state government has already issued to local businesses with payrolls of up to $10 million in value, it has now announced that it will allow businesses to defer their payroll tax payments throughout the entirety of the 2021 financial year.

Moreover, Andrews announced that his government will be offering further support through stamp duty discounts and waiving levies like liquor licenses.

Are you a business owner currently struggling with the impacts of Victoria’s lockdown restrictions? Start plotting your course back to stability with the help of a specialist business advisor. Start your search for an advisor near you today.