Victorian Government double-down on lockdown, financial support

The State Government has announced a further $209 million in support has been put forward to support businesses.

After announcing a $250.7 million Circuit Breaker Business Support Package, the State Government will add a further $209.3 million in financial support, bringing the total to $460 million in support for eligible businesses.

/Acting Premier James Merlino

“This is hard for everyone, and this extra support means businesses can be in a position to recover strongly once their doors reopen,” said Acting Premier James Merlino in a statement.

 Victorian Chamber Chief Executive Paul Guerra said Victoria’s business and worker emergency had intensified as a result of the news.

“Today’s lockdown four extension has intensified Victoria’s business and worker emergency. We need a clear path out of this lockdown that will see a return to the level of restrictions that we had in place prior to this fourth lockdown. We know businesses are ready to do whatever is required to ensure that we can open up again,” he said.

“Victorians need and deserve transparency and clarity on what the parameters are to go into lockdown and what we need to achieve to open up again. How can we come together as a community and keep our business, jobs and learning alive while keeping Victorians safe?”

Financial support for business

The original Circuit Breaker Business Support Package featured three key support measures:

• Business Costs Assistance Program Round Two
• Licensed Hospitality Venue Fund 2021
• Victorian Events Support Package

While 90,000 businesses across Victoria are eligible for support as part of the original $250 million package, only businesses in Metropolitan Melbourne will be eligible for the $209 million extension.

The Business Costs Assistance Program grants of $2,500 for eligible businesses directly affected by the industry restrictions will be doubled to $5,000 for eligible businesses in Metropolitan Melbourne. Regional businesses that are unable to open due to ongoing restrictions will also be eligible for the extension payment.

The Licensed Hospitality Venue Fund grants of $3,500 for businesses holding an eligible liquor license and food certificate will also be doubled to $7,000 for eligible businesses in metropolitan Melbourne.

The Business Victoria website that is accepting applications received 10,000 hits a minute after the grants went live on Thursday night.

As of Friday early evening, it had received almost 38,000 applications for the various grants on offer to Victorian businesses.

Guidelines in the grants make businesses attest that they are supporting staff while stood down to access paid leave or supporting casual workers “where possible”.

Commonwealth Bank economists have estimated the two-week lockdown will cost Victoria’s economy $2.3 billion.

Some of that lost spending will be picked up in later cycles as people simply defer purchases, however, lost wages will never be recouped by the economy as will much spending.

GDP figures this week showed Australia’s economy has remarkably grown since COVID began, however, economists warn that wider snap lockdowns, like that in Victoria, could easily unwind this achievement.