On Sunday 13 September 2020, the Victorian Government announced a new support package delivering $3 billion in “cash grants, tax relief and cashflow support delivered to Victorian businesses.”
There are almost no details on the package as yet – just the announcement. We will bring you more as soon as they are released. And, some of the $3 billion appears to be in the form of deferrals (not waivers) and includes past initiatives.
Here is what we know so far:
Grants
Cash grants for SMEs “most affected by coronavirus restrictions”
$822 million for a third round of Business Support Fund Grants of $10,000, $15,000 or $20,000 to businesses with payrolls of up to $10 million (depending on size). No details are available as yet and it is unclear what the eligibility criteria will be to meet the description of “most affected by coronavirus restrictions”.
Grants are not open as yet. Grant applications open on Friday 18 September 2020.
What support is available?
The amount of grants available from this program range from $10,000 to $20,000 depending on the business’ annual payroll. To be eligible for a grant from this program, applicants must:
- operate a business located within Victoria; and
- participate in the Commonwealth Government’s JobKeeper Payment scheme; and
- employ people and be registered with WorkSafe; and
- have had an annual payroll of less than $10 million in 2019-20; and
- be registered for Goods and Services Tax (GST); and
- hold an Australian Business Number (ABN); and
- be registered with the responsible Federal or State regulator.
An eligible business will receive:
- $10,000 if its annual payroll is less than $650,000
- $15,000 if its annual payroll is between $650,000 and $3 million
- $20,000 if its payroll is between $3 million and $10 million.
A full list of the eligibility criteria for a grant will be published when applications open.
For more information, see Third Round of Business Support Fund Grants.
Creation of a Licenced Venue Fund
Grants of between $10,000 and $30,000 for licenced venues. And, liquor license fees for 2021 will be waived. Once again, the details on these initiatives are unclear.
Support for Alpine resorts
Grants of up to $20,000 to help businesses cover their resort fees.
Payroll tax
Payroll tax will be deferred (not waived) for businesses with payrolls up to $10 million for the full 2020-21 financial year. Originally the deferral applied to the first half of 2020-21.
Businesses with payrolls of $10m or over can defer payroll tax for the first quarter of 2020-21 under previously announced initiatives.
Fees and charges
The 50% stamp duty discount for commercial and industrial property across all of regional Victoria brought forward to 1 January 2021 and the Vacant Residential Land Tax waived for properties that are vacant in 2020.
General
Grants of up to $20,000 for chambers of commerce to support members. Plus, funding for a return post COVID-19 including $44 million for business workshops to assist with digital transformation and investment in products such as Shopify and Squareonline. And, $8.5m in additional funding for the Click for Vic website promoting Victorian businesses.
It’s important to talk to your accountant to make sure you get it right. Please note, grant applications are not open at the moment, however, if you would like us to apply for the grant when available to, please call us now on 03 9836 2900