A summary of current funding available in Victoria to eligible small and medium businesses affected by the recent lockdowns.
1.Business Costs Assistance Program Grants (Rounds one to three)
It is assumed all of these payments will be declared to be tax-free. Further information can be found on the Business Victoria website, here.
On 2 October 2021, the Victorian Government announced a new support package for construction businesses most affected by lockdown restrictions.
The ‘Business Costs Assistance Program Round Four – Construction’ grants are designed to provide a one-off payment to eligible businesses, this includes sole traders covering the restrictions period from 21 September to 4 October 2021
Payment amounts will be as follows:
- Non-employing sole traders – $2,000.
- Businesses with a payroll of up to $650,000 – $2,800.
- Businesses with a payroll $650,000 to $3m – $5,600.
- Businesses with a payroll of $3m to $10m – $8,400.
To be eligible, businesses must be
- registered under a relevant construction-sector ANZSIC code,
- have incurred direct costs due to the restrictions and be registered for GST, also,
- they must not have previously received support under the Business Costs Assistance Program or the Small Business COVID Hardship Fund.
2. Business Costs Assistance Program Round Five
It is assumed all of these payments will be declared to be tax-free. Further information can be found on the Business Victoria website, here.
On 30 September 2021, an announcement was made for a new funding package that would support businesses as Victoria reaches the 70%, then 80%, fully vaccinated thresholds (forecasted to be around 26 October and 5 November respectively).
This includes the Business Costs Assistance Program Round Five, which will provide two fortnightly automatic payments to eligible existing recipients between 1-29 October 2021 as follows:
- Non-employing businesses – $1,000 per week.
- Businesses with payroll of up to $650,000 – $2,800 a week.
- Payroll of between $650,000 and $3 million – $5,600 a week.
- Payroll of between $3 million and $10 million – $8,400 a week.
Businesses that remain closed, or severely restricted, between 70% and 80% double dose will receive an automatic payment for the period from 29 October 2021 to 13 November 2021.
3. Commercial tenancy relief for Victorian businesses
Tenants and landlords can contact the Victorian Small Business Commission on 13 87 22 or visit their website, vsbc.vic.gov.au.
On 28 July 2021, it was announced the Victorian Government would reintroduce the Commercial Tenancy Relief Scheme to ease the pressure by providing rent relief for eligible tenants.
The scheme applies retrospectively from 28 July 2021 and will run to 15 January 2022.
Amongst other eligibility criteria, this is available for business tenants with an annual turnover under $50 million that have experienced a fall in turnover of at least 30% due to the COVID19; making it a requirement for commercial landlords to provide rent relief that matches their tenant’s fall in turnover (with land tax relief of up to 25% provided to eligible landlords).
More information can be found at the Victorian Small Business Commission here.
4. Commercial Landlord Hardship Fund 3
Applications to the Commercial Landlord Hardship Fund 3 will close at 11:59pm 15 January 2022, or when funds are exhausted
The Commercial Landlord Hardship Fund 3 provides grants to eligible small landlords experiencing hardship as a result of waiving rent for their tenant/s between the period of 28 July 2021 and 15 January 2022 under the Commercial Tenancy Relief Scheme.
A rent waiver is where some or all of the rent owed for an agreed period of time does not have to be paid.
Eligible small landlords can apply for a grant of up to $6,000 per eligible tenancy. In cases where landlords are experiencing acute hardship because of the rent waiver agreed with their tenant(s), the grant may be increased to a maximum of $10,000 per eligible tenancy.
Landlords must provide information about the rent waiver agreed with their tenant using the landlord acceptance letter. We can assist in preparing this for you.
5. Small Business Digital Adaptation Program
Applications close 5 December 2021
A $1,200 rebate is provided to eligible small businesses that have accessed a range of digital business tools to upgrade their websites, improve cash flow, commence online marketing, accounting cloud software and project management.
Eligible small businesses must operate a business located in Victoria and have been in operation since or before 13 September 2019.
More information can be found here.
6. Small-Scale and Craft Program Stream Three
Application closed date is 19 November 2021
Funding from $25,000 up to $100,000 is available to eligible small-scale and craft agribusinesses for projects that:
- create cohesive visitor experiences that showcase Victoria’s premium small-scale and craft products and has the potential to become an ongoing tourist attraction;
- develop new agri-visitor experiences across Victoria;
- ensure Victoria continues to be a leader in artisanal produce, showcasing the sectors excellence, resilience, sustainability and local job creation;
- create opportunities for communities and visitors to engage with the unique small-scale and craft sector; and
- increase understanding of and customer connection with Victoria’s small-scale agribusinesses.
More details on the COVID19 funding can be found here.
If you have a particular question regarding your eligibility, tax position and how any of the above will impact you, we can be reached here.
To keep up to date with tax tips and all things account, visit our Instagram (here).
=
