Amidst the outbreak of Corona virus pandemic, the businesses are suffering substantial economic losses. The Victorian government took a great initiative to assist small businesses and their employees in order to cope up with the ongoing crisis.
Daniel Andrews, Victorian Premier announced today an economic survival package worth$1.7 billion. The decision was taken after a series of discussions at National Cabinet.
Andrews said, “We’ve listened to business and workers and now we’re taking unique and unprecedented action to help businesses and their workers through this crisis. Cash is better in the hands of struggling businesses than in a Government bank account right now –Victorian workers need us to step up to help get them through.”
According to this government rescue package for small businesses, the government will be providing entire payroll tax refunds for the financial year of 2019-20 to small businesses having payroll less than $3 million. In this way, the government will be paying $550 million back to 24,000 small businesses, which employ 400,000 workers by Friday.
Joanna Brewer, owner of Issues cafe in Melbourne complains about the losses she faced due to Corona virus outbreak. With low business, she is worried about how she would manage to pay the rent.
She welcomed this move of the state government relief to businesses on Corona virus heartily saying this would give a “big relief” to small businesses.
Payments will begin flowing the upcoming week. This will lead to annual savings of $113,975 for eligible companies, with businesses saving an average of $23,000. These businesses are approximated to employ 400,000 workers. This government rescue package for small business will help companies which in turn will be a relief for employees too.
Within five business days, the Victorian Government will disburse all outstanding supplier invoices. This amounts to $750 million of funds. The private sector is advised to do the equivalent where feasible. Under this corona virus relief for small business, the Government will also provide aid to the hospitality industry via giving waiver in liquor licensing fees for the year 2020 for affected areas and small enterprises.
In addition to this, the government will also give $500 million in order to establish a Business Support Fund. The fund will benefit the poorly affected industries, comprising hospitality,lodging, tourism, entertainment, arts and retail sector.
For administering the Business Support Fund, the government will partner with the Victorian Chamber, Australian Hotels Association and Ai Group. This fund will assist these businesses and help them survive amidst the pandemic.
The Business Support Fund will enable employees to find new jobs who lost theirs,encompassing work like cleaning public places or delivering food. The Government will also foster job matching to support Victorians to discover short-term or informal positions.
The survival package announced today has been formulated to help small and medium-sized businesses. With this Government rescue package for small business, the Victorian Government wants businesses to support their workers during times of economic crisis.