Barton Deakin Brief: Expanded Federal Lockdown Support for NSW and Victoria

Date: Jul 2021

Barton Deakin Brief: Expanded Federal Lockdown Support for NSW and Victoria

28 July 2021

Introduction

The Federal government has announced an expansion of the National Disaster Payment to Individuals and the COVID-19 Business Support Payment as well as $200 million in support for Victorian businesses.

Overview

  • The Prime Minister announced an increase in the Business Support Payment and the COVID-19 Disaster Payments for businesses and individuals in the Greater Sydney region.
  • The Commonwealth and Victorian governments have co-funded a $400 million support package for businesses in Victoria.
  • By the end of the year, all Australians should have had the opportunity to get vaccinated.
  • The Prime Minister stated that lockdowns could “become a thing of the past” by Christmas.

New South Wales Business Support

  • The federal government is co-funding business support payments in NSW until at least 28 August. The expanded payment will take effect from 18 July 2021.
  • Eligible entities (including not-for-profits) will now receive payments of between $1,500 and $100,000 per week based on the level of their payroll.
  • The maximum turnover threshold for eligible businesses has increased from $50 million to $250 million.
  • The payment will continue to be calculated based on 40% of payroll for businesses that have suffered a 30% or more decline in turnover.
  • The payment will remain set at $1,000 per week for sole traders.
  • The payment shall also provide more support for businesses to cover unavoidable costs such as rent, insurance and maintenance as well as employee costs.
  • The support will continue to be conditional on businesses maintaining their employee headcount as of 13 July.
  • Businesses that have already submitted an application will have their payment adjusted to the expanded program.

New South Wales Individuals Support

  • The COVID-19 Disaster Payments for individuals have increased, including temporary payment increases for welfare recipients who have lost work.
  • Those who have lost more than 20 hours of work will receive $750 instead of $600.
  • Those who have lost between 8 and 20 hours of work will receive $450 instead of $375.
  • Welfare recipients who have lost work will receive an extra payment of $200 per week.
  • Eligible recipients are those on welfare who have lost more than eight hours of work each week.
  • That $200 comes up on top of existing Jobseeker, or Youth Allowance, or pension payments and similar welfare payments.

Victorian Business Support

  • The Commonwealth and Victorian governments have announced a $400 million support package for businesses in Victoria.
  • The funding is a 50/50 split between Victoria and the Commonwealth. The Victorian government will administer the fund.
  • The package includes a $156 million Business Continuity Fund, which will pay $5000 grants to up to around 30,000 businesses unable to operate at full capacity.
  • The existing Licenced Hospitality Venue Fund will receive a $70 million boost, with grants of up to $20,000 for licensed venues.
  • For the two previous funds, businesses in the Melbourne CBD will be eligible for an additional $2000.
  • An $85 million Small Business COVID Hardship Fund will be established. These include grants up to $5,000 for firms that have suffered a 70% or more decline in revenue during the lockdown.
  • The $9.8 million Alpine Business Support package will be distributed to more than 400 businesses operating in Victoria’s ski fields. Businesses will be eligible for grants of between $5,000 and $20,000.
  • The $80 million Commerical Tenancy Relief Scheme and Landlord Hardship fund provides rent relief to small to medium sized commercial tenants and their landlords. This scheme is funded fully by the Victorian government.

More Information

To read the Prime Minister’s Media Release on NSW Business Support, click here.

To read the Prime Minister’s Media Release on COVID-19 Disaster Support Payment increases, click here.

To read the Prime Minister’s Media Release on Victorian Business Support, click here.

 

For more information, contact David Alexander on +61 457 400 524, Grahame Morris on +61 411 222 680, Cheryl Cartwright on +61 419 996 066, or John Fitzgerald on +61 488 111 568.

 


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