Author: Tony Rule, Partner, TAG Financial Services
A lot can happen in a week. Last Thursday Victoria entered into an emergency
lockdown to control the spread of COVID-19. Then followed a week of toing and froing between the Victorian State Government and the Federal Government about who should be providing assistance and the roles that a lack of vaccinations and poor quarantine arrangements have played in the lockdown. Disappointingly, this was largely played out through a series of accusations in media conferences and related commentary.
When it was all said and done, there has been some assistance provided for some of the businesses that are suffering through this difficult time by the State Government and payments to employees missing out on work by the Federal Government. We note that some of the assistance provided directly to employees will tempt employers to stand down employees to control costs and limit losses after what has already been a difficult year financially.
This is how the rounds played out…
Round 1
The Victorian State Government last weekend announced assistance for Victorian business owners to assist with the COVID driven seven day lockdown in the following three areas:
– Business Costs Assistance Program – $2,500 per business.
– Licensed Hospitality Venues – $ 3,500 per venue.
– Events Industry Support – amounts not disclosed.
See our previous blog for more information.
Round 2
On Wednesday, the Victorian Government announced that Melbournians will need to remain locked down for a further seven days – accordingly those businesses that are impacted for two weeks will be able to apply for double the previously announced amounts (i.e. either $5,000 and $7,000 for the Business Costs Assistance Program or the Licensed Hospitality Venues Assistance respectively) taking the total assistance to $460m.
Small businesses will need to apply by 24 June 2021 and further information on eligibility for the State Government’s $5,000 Business Costs Assistance Program can apply here, while licensed venues can apply for $7,000 here.
Round 3
On Thursday, the Federal Government announced that employees that normally work more than 20 hours a week would be eligible for $500 per week and employees that normally work less than 20 hours a week will be eligible for $325 per week.
To be eligible recipients will need to show they:
– Are over 17 years old.
– Have less than $10,000 in liquid assets.
– Have been locked down for more than a week.
– Would have worked had a lockdown not been called.
– Have lost income as a result of the lockdown.
– Have used up their sick leave or other leave.
– Have not received any other support like JobSeeker.
There is no support being offered to business owners by the Federal Government and the support noted above to business owners is well short of the losses that many of them are incurring.
If you have any queries or need assistance to access the various grants, please contact your TAG advisor on 9886 0800 or via email.
Disclaimer: The information contained is general in nature. Professional advice should be sought before acting on any aspect on this page. Financial planning services provided by TAG Financial Advisors Pty Ltd (ABN 77 154 205 017 AFSL 415632), a wholly owned subsidiary of TAG Financial Services Pty Ltd (ABN 67 075 374 686). Copyright 2021. Please do not reproduce without the expressed written consent of the author.