Breaking down the numbers: Funding allocation for the new Business Resilience Package

  • Post published:18/09/2020
Breaking down the numbers: Funding allocation for the new Business Resilience Package

The Victorian Government’s “Business Resilience Package” (previously called the “Business Survival and Adaptation Package”) was announced last weekend. It will provide $3 billion in cash grants, tax relief and cash flow support to Victorian businesses, and includes a third phase of the Business Support Fund grant program.

The federal and Victorian governments have also agreed to make the grants to small and medium business under Victoria’s Business Resilience Package exempt from income tax. More details here

Here’s how that $3 billion will be allocated…

Business Support:

  • Small and medium sized business ($822 million): The third round of the Business Support Fund provides grants of $20,000, $15,000 or $10,000, depending on size, to around 75,000 eligible businesses with a payroll of up to $10 million. Applications open Friday 18 September 2020.
  • Licensed Hospitality Business ($251 million): The Licensed Hospitality Venue Fund provides grants of up to $30,000 for licensed pubs, clubs, hotels, bars, restaurants and reception centres, based on their venue capacity and location, plus liquor license fees waived until 2021.
  • Sole Trader Support Fund ($100 million): The Sole Trader Support Fund provides grants of up to $3,000 to over 30,000 eligible sole traders in sectors such as retail, accommodation and food services, creative and media, hairdressing, gyms, events, education and training who operate from a commercial premises or location as a tenant.
  • Alpine businesses ($4.3 million): Grants of up to $20,000 to help alpine businesses pay a service charge to Alpine Resort Management Boards.f
  • Business Chambers and Trader Groups ($3 million): A competitive grants program to support local business groups and chambers of commerce in helping their members adapt to COVID Normal.

Business Adaptation:

  • $20 million voucher program to assist sole traders and small businesses in building their digital capability
  • $15.7 million package to help Victorian exporters get their products to market and establish new trade channels.
  • $8.5 million expansion to the ‘Click for Vic’ campaign to encourage more Victorians to support local businesses.
  • $87.5 million Outdoor Eating and Entertainment Package to support hospitality businesses prepare for COVID Normal reopening across Victoria.
  • $100 million Melbourne City Recovery Fund between the Victorian Government and the City of Melbourne to support Melbourne on the roadmap for reopening to COVID Normal in the lead up to Christmas and during summer.

Waivers & Deferrals:

  • $1.7 billion to defer payroll tax for businesses with payrolls up to $10 million for the full 2020-21 financial year
  • $41 million to bring forward the 50% stamp duty discount for commercial and industrial property for all of Regional Victoria
  • $33 million to defer the planned increase in the landfill levy for six months
  • $30 million to waive 25% of the Congestion Levy this year, with the outstanding balance deferred.
  • $27 million in liquor license fee waivers for 2021
  • $6 million to waive Vacant Residential Land Tax for vacancies in 2020.

Click here for other Government Packages and other COVID-19 Assistance. 
Click here for a more details regarding the Business Support Fund.