Victorian Government announces $534 million support package for Coronavirus impacted businesses

With parts of the state re-entering lockdown earlier this week, the Victorian Government has today unveiled a $534 million support package for businesses.

The package includes cash grants of $5000 for some 80,000 eligible businesses in metropolitan Melbourne and Mitchell Shire, which moved back into Stage 3 Coronavirus restrictions on Wednesday night.

The support package will also include a $30 million fund for hospitality business, $20 million for small businesses in Melbourne’s CBD and a $40 million fund to help regional tourism businesses to cover refunds and marketing.

A further $26 million has also been set aside for mental health support and mentoring for small business owners, including sole traders.

Explaining that the package is aimed at reducing a decline in the gross state product, Victorian Treasurer Tim Pallas advised “we are expecting that there will be literally billions of dollars written off the expected size of the Victorian economy.

"It will take some years before we see that level of economic activity come back."

The announcement on the $5000 grants follows Victorian Premier Daniel Andrews’ unveiling of the Business Support Fund grants last week, for businesses within the 12 ‘hotspot’ postcodes that were locked down first.

The latest grants are an extension of the same scheme.

Treasurer Pallas said the latest package had been drawn up in “close consultation” with both the Victorian Chamber and the Victorian Hotels Association.

Advising that the support takes Victoria’s total stimulus to $6 billion, he added “what’s critically important, is that the wellbeing of Victorians and Victorian industry and business is first and foremost in our thinking during these difficult times.

“That is our driving focus and that will be the effort where we put our continuing support over the weeks to come.”

He also suggested there will be additional measures announced at a later date.

The funding for regional tourism takes account of Melbourne and Mitchell Shire who have had to cancel their travel due to Stage 3 restrictions.

Eligible businesses will be able to claim up to $225 per night, for up to five nights, for every room cancelled - provided they refund the booking in full.

Victorian Minister for Industry Support and Recovery, Martin Pakula, said there were also funds for a marketing campaign for travel between the regions, adding “there is some marketing support there which will obviously wait until we are at a point where we are actively encouraging people from the regions to move around."

Click here for more information on how businesses can apply for this grant funding.