Tim Pallas Business Support Package

Victoria’s New $3 Billion Business Support Package

Victoria is home to some of the best fresh food, wine, galleries and homewares in the world – but the pandemic has hit many small producers hard. Premier Daniel Andrews yesterday announced a new business support package that will see $3 billion in cash grants, tax relief and cashflow support delivered to Victorian businesses as the state fights to drive coronavirus cases down and progress along the roadmap to COVID Normal.

With this new multi-billion package to help businesses survive and keep Victorians in jobs –the Government’s total business support adds to over $6 billion.

Over $1.1 billion in cash grants will support small and medium sized businesses that are most affected by coronavirus restrictions including $822 million as part of the third round of the Business Support Fund. Around 75,000 eligible businesses with payrolls up to $10 million will receive grants of $10,000, $15,000 or $20,000 depending on their size. More than 108,000 businesses have already shared in $1.47 billion from the first two rounds of Business Support Fund grants.

To support Victoria’s bars, restaurants, pubs, clubs, hotels and reception centres, the Government will establish a $251 million dedicated Licenced Venue Fund, with grants of between $10,000 and $30,000 for licenced venues of all shapes and sizes. The Government is also providing further relief by waiving liquor license fees for 2021.

Trips to Victoria’s ski fields haven’t been possible for thousands of families this year, so the Government will give businesses in our alpine resorts the support they need with grants of up to $20,000 to help cover their resort fees, saving them a combined $4.3 million.

The Government will also partner with local business groups and chambers of commerce, with fresh grants of up to $20,000 so they can help their members adapt and find their feet in a COVID Normal world.

To provide a much needed $1.7 billion cashflow boost for businesses, the Government will now defer payroll tax for businesses with payrolls up to $10 million for the full 2020-21 financial year.

Building on that support, the Government will also provide a further $137 million in waivers and deferrals of charges including liquor licence fees, the congestion levy and increases to the landfill levy. The 50 per cent stamp duty discount for commercial and industrial property across all of regional Victoria will be brought forward to 1 January 2021 and the Vacant Residential Land Tax will be waived for properties that are vacant in 2020.

Even after we reach COVID Normal, many businesses will be required to change the way they do things, so we can keep cases low and protect our hard-won gains. That’s why the Government will invest $44 million to equip businesses with the support they need to thrive under a COVID Normal. It includes $20 million for small businesses to access off-the-shelf digital programs such as Shopify or Squareonline, training and workshops designed to help businesses adapt to online operations.

Exports are vital to Victoria’s economy – contributing 12 per cent to Victoria’s GSP and 330,000 Victorian jobs. That’s why we’re launching a $15.7 million export recovery package to address logistics and supply chain issues caused by the pandemic, and establish new export channels. Businesses will be connected to international markets through virtual trade missions as well as assistance to adapt their export strategies to respond to the rapidly changing global market.

“As we drive down case numbers and reach COVID Normal – we’re providing billions of dollars in support to make sure businesses make it through to COVID Normal”, Said Victorian Treasurer Tim Pallas.

The key measures of the $3 billion Business Support package announced include:

  • $251 million in grants of $10,000 to $30,000 for licensed pubs, clubs, hotels, bars, restaurants and reception centres
  • $27 million in liquor licence fee waivers for 2021
  • $822 million in grants of up to $20,000 for businesses with a payroll of up to $10 million
  • $1.7 billion in payroll tax deferrals for the full 2020-21 financial year for businesses with payrolls up to $10 million
  • $41 million support by bringing forward the 50 per cent stamp duty discount for commercial and industry property for all of regional Victoria.
  • A $20 million to help sole traders and small businesses through a voucher program
  • $4.3 million in grants of up to $20,000 to help ski resorts cover their fees
  • $15.7 million to help Victorian exporters to overcome current issues and set up new export channels

For any updates and additional details about support for businesses please visit: www.business.vic.gov.au.

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