Premier Dan Andrews has announced the largest cash relief support package Victoria’s history with a combination of cash grants and tax relief for Victorian businesses in the Business Resilience Package. $822 million has been designated for cash grants to SMEs, with a further $1.7 billion available in tax relief.
Cash Grants
Small and medium sized business that meet the eligibility criteria will be able to receive between $10,000 and $30,000 in cash grants under the “Third Round of Business Support Fund Grants”. To be eligible for the Third Round grant, your business must:
- Be located within Victoria;
- Be a Jobkeeper participant;
- Have employees and be registered with WorkSafe;
- Have had an annual payroll of less than $10 million for the financial year ending 30 June 2020;
- Be registered for GST;
- Have an ABN; and
- Be registered with the responsible Federal or State regulator.
Applications for the Third Round grant open on Friday 18 September. With an estimated 75,000 eligible business in Victoria, business looking to apply for the grant should ensure they are ready to apply first thing Friday.
Tax Relief
As well as accessing the Third Round grant, business with an annual payroll of less than $10 million will be able to defer payroll tax for the financial year ending 30 June 2021. Businesses in regional Victoria will have access to further tax relief, with the 50% stamp duty discount for commercial and industrial property in regional Victoria being moved forward.
Industry Specific Support
As well as providing tax relief and cash grants to small to medium Victorian businesses, a number of industry specific support packages have been announced:
- Grants of up to $30,000 will be available to licensed venues, and liquor license fees will be waived until 2021.
- Grants of up to $3,000 will be available to eligible sole traders.
- $4.3 million will go towards providing grants of up to $20,000 to help alpine business pay their service charge.
- $87.5 million is being designated to support Victoria’s hospitality industry transition to outdoor dining. Hospitality businesses with an annual payroll of less than $3 million will be eligible for grants of up to $5,000 to help with this transition.
- A $20 million voucher program will assist sole traders and small business build their digital capability.
- $15.7 million will be put aside to help Victoria exporters deal with logistics and supply chain issues to get their product to market.
Review
This new package has only been announced in the last week, and we are still waiting for the specific details of the support that will be made available. In any event, all small to medium businesses and eligible industries should keep a close eye on the Business Resilience Package.
Navigating the specifics of these grants can be an onerous and time-heavy task. We at Allied Legal make sure we stay across all COVID-19 developments to ensure our clients have quick and efficient access to any and all relief available. If you need an ally on your side to help navigate the COVID-19 world, give us a call on 03 8691 3111, or send us an email at hello@alliedlegal.com.au.
The contents of this article have been taken from https://www.business.vic.gov.au/support-for-your-business/grants-and-assistance/business-resilience-package.
