FEDERAL AND STATE GOVERNMENT ANNOUNCE FURTHER SUPPORT FOR BUSINESSES IMPACTED BY CORONAVIRUS (COVID-19)

The Coronavirus (COVID-19) outbreak continues to impact our local businesses and community. The situation has changed over the weekend and since we issued the last update for business on Friday 20 March.

The National Cabinet has now implemented Stage 1 of a shutdown of non-essential activity across the country from midday today. This means that a number of businesses are now required to close, including pubs, clubs, nightclubs, Crown Casino, and licensed venues in hotels and pubs. It also includes gyms, indoor sporting venues, places of worship, cinemas and entertainment venues. Restaurants and cafes will only be allowed to provide home delivery or takeaway services. You can read the Prime Minister's update on COVID-19 measures (Sunday 22 March) here, and the Premier of Victoria's update (Monday 23 March) here.

Over the weekend, both the Federal and Victorian Governments announced new support and relief packages to help support businesses and employees impacted by the COVID-19 pandemic. Please see below an overview of the support available for businesses, which follows on from the update we sent out on Friday 20 March. We still strongly recommend that you contact your bank, accountant and utility providers if you are experiencing hardship due to the COVID-19 outbreak.

If you would like further information or to talk through your situation, please contact the Investment Attraction & Business Support Team on 5220 7111 or business@gplains.vic.gov.au

For the latest information relating to COVID-19 please visit the Victorian Government Department of Health and Human Services website or call the COVID-19 hotline on 1800 675 398.

DHHS Coronavirus website

FEDERAL GOVERNMENT SUPPORT

The Federal Government released the second stage of its support package on Saturday 22 March. Key elements for businesses include:

Cash Flow assistance for businesses
The Australian Government has boosted the initial assistance package to Australian businesses to manage cash flow challenges and retain employees. Assistance includes cash flow support to businesses and temporary measures to provide relief for financially distressed businesses.

The Commonwealth will guarantee unsecured loans of up to $250,000 for a term of three years with no repayments for the first six months
Business operators are encouraged to contact their bank to commence discussions around accessing these loans and payment deferral facility.

New Wage Subsidies for workers who have lost their jobs or been stood down
Households, including casuals and sole traders, will have access to this financial support that will see a doubling of the Job Seeker Allowance (previously New Start payments) to just over $1,100 a fortnight. The normal asset test and waiting periods will be waived.

Access to Superannuation
Casuals and sole traders who can show that their hours or their income have decreased by 20% or more as a result of COVID-19 are eligible to be able to withdraw $10,000 tax free from their superannuation in this current financial year and a further $10,000 in the next financial year.

Relaxation of insolvency measures
There will be more flexibility regarding creditor initiated insolvency and voluntary administration actions. The outstanding amount limits have been moved from $2,000 to $20,000 and timing to respond has also been moved to six months instead of 21 days. Relief for directors while trading insolvent will also be provided over the next six months.

Coronavirus Business Liaison Unit
A Coronavirus Business Liaison Unit has been established within The Treasury to engage with business on a regular basis and provide updates to government on crucial issues.

Federal Government information and support

STATE GOVERNMENT INITIATIVES

The Victorian Government has initiated a $1.7 billion relief package to support both businesses and workers who may be displaced during the COVID-19 pandemic. The elements of this package include:

Payroll Tax Relief
Eligible businesses will be provided a full refund of payroll tax paid from 1 July 2019, as well as the deferral of future payments.

Cash allocations
An average payment of $23,000 wll be provided to the 24,000 small and medium sized businesses that together employ over 400,000 people across Victoria. Eligibility criteria is yet to be determined.

Economic Survival and Jobs Package
$500 million towards a Business Support Fund to assist small to medium businesses most impacted by the COVID-19 outbreak.

Please register your interest here

Displaced workers register
A register to match the skills of displaced workers with other businesses who are looking to hire in the current environment.

Access the register here

Other key elements of the initiative include;

Waiving of Liquor Licencing fees.
Removal of rent obligations for commercial businesses that operate in government properties.
All invoices due to businesses for services provided to State Government agencies must be paid within five days.
Land Tax Relief.

Business Victoria Coronavirus Business Support