Lockdown-hit businesses to share $250m

BUSINESSES forced to shut during the state’s fourth lockdown will be given a lifeline, although there is no support for out-of-pocket workers.

On Sunday the Victorian Government announced a $250 million support package to help businesses survive the seven-day shutdown.

The package includes $190 million in $2500 grants for businesses, $40.7 million in $3500 grants for liquor licence and food certificate holders and $20 million for event operators.

It expects 90,000 small to medium-sized businesses and sole traders to be eligible for the payments.

Treasurer Tim Pallas said the package was bigger and broader than that provided during the state’s snap lockdown in February.

“It’s the single biggest package on a pro-rata basis that this state or any state has provided,” he said.

Treasury estimates Victoria’s seven-day lockdown will punch a $700 million hole in the economy, but Mr Pallas would not be drawn on possibly extending the package if it drags out past Thursday.

“It is hurting businesses. It is hurting the workforce,” he said. “We understand that we have an obligation to assist and support them. That is exactly what we are doing.”

Industry groups welcomed the package after publicly lobbying the State Government for immediate support, although some fear it might not be enough.

“Compared with the cost to business from the lockdown the relatively small amount of support offered will be quickly swallowed up if the lockdown continues beyond a week,” said Australian Industry Group Victorian head Tim Piper.

Victorian Chamber of Commerce and Industry chief executive Paul Guerra added the Federal Government needed to urgently follow suit with a JobKeeper-like wage subsidy.

“When Australians needed support in 2020, both State and Federal governments were there. Now is not the time for the feds to abandon Victorians,” he said.

– CALLUM GODDE/ AAP