Victorian Support Package: A drop in the ocean
The Victorian State Government has this week announced a further $3 billion ‘support package’ for small and medium sized businesses and some sole traders in an attempt to help keep them from closing their doors permanently, while much of the state remains in lockdown.
The package includes a range of measures, but there is pessimism from businesses that it is only a drop in the ocean compared to the issues they are facing.
The two major elements of the package are:
- Grants for individual enterprises of up to $20,000 (which will total $822 million of the total package); and
- $1.7 billion of payroll tax deferrals as well as other deferrals totaling $100 million.
Here’s how it works. Businesses with an annual payroll in 2019-2020:
- Less than $650,000 will receive $10,000;
- Between $650,000 and $3 million will receive $15,000; and
- Between $3 million and $10 million will receive $20,000.
This means, that of the total $3 billion being spent, outside of a deferral of payroll tax and a maximum grant of $20,000, there is a maximum of $500 million to try to tie eligible businesses over for an indefinite period of time.
Applications open on Friday, 18 September 2020 and can be accessed here:
If you are experiencing difficulty, need advice about your business’s way out of the Covid-19 crisis, or would like to know more about the help on offer, please contact Chris Bergin or Brent Morgan on (03) 9670 8700.