Business Support Fund for SMEs

Supporting Small Businesses Amidst COVID-19 Pandemic: Victorian Government’s “Business Support Fund”

The COVID-19 pandemic has posed severe challenges for the Victorian businesses. Where on the one hand people are fighting this deadly virus, entrepreneurs are also on the lookout for ways to improve the stability, solvency, and profitability of their businesses. The government too is working towards it. So with the aim to offset the effects of coronavirus, the Victorian government has enacted several emergency aid packages including the ‘Business Support Fund’ that will benefit both businesses and workers.

To understand it better, here’s an insight into the hows and whys of the ‘Business Support Fund for SMEs’:

  • What is the Business Support Fund? To mitigate the negative impact of the Corona outbreak and help businesses to remain financially solvent, the Victorian Government has introduced a $500 million ‘Business support Fund’ as a part of the government’s $1.7 billion Economic Survival Package. This package is specially designed to support eligible SMEs in the hardest-hit sectors, including hospitality, tourism, accommodation, retail, arts, and entertainment industry. This stimulus package comes in the form of payroll tax refunds, rent, and land tax assistance, operational cost relaxation, and liquor license fee waivers.

 The funding under this program is available at $10,000 per business through a grant process.

  • Who all are eligible for this fund? To tackle the challenges posed by the COVID-19 pandemic and avoid permanent closure, SMEs must meet the following eligibility criteria:
    • Have already hired staff, including full-time and part-time workers
    • Turnover is more than $75,000
    • Payroll is less than $650000
    • Hold an Australian Business Number (ABN) issued before 16 March 2020
    • Engaged in business operations in the Australian State of Victoria before 16 March 2020.

It’s important to note that SMEs that don’t employ people are not eligible for any State government support directly. However, such businesses can seek financial assistance through the Federal Government’s JobKeeper Payment or the Federal Government’s Job Seeker Payment.

  • How to apply for this program? Eligible business owners should submit an application online on the Business Victoria website or place a call on the Business Victoria hotline at 13 22 15. Along with the application, it is also important to submit the following documents:
    • A written certificate that they meet the eligibility criteria.
    • Photocopy of the most recent Business Activity Statement (BAS).
    • Financial statements, Income tax returns, and details of employees.
    • Any other documents as stated by the Administrator.

For accurate preparation of financial and tax-related documents, take the help of experienced tax accountants Melbourne.

Note:  Applications will be accepted till 1 June 2020 only.

  • Where can SMEs use this fund? Funds received under this program must be used to cover expenses such as:
    • Business costs, including utilities, salaries, and rent.
    • The cost incurred on financial, legal, or other advisory services that are availed for business continuity planning.
    • The cost required for stabilizing and developing the business through marketing and communications activities.
    • Expenses incurred on other operational activities related to the business.

Conclusion:

The introduction of various Economic Survival Packages was undoubtedly the need of the hour. Such government measures will not only stabilize the small businesses in this difficult time but will also gear up the economy for a fresh start.

In this regard, the expert team of RSG Accountants can help you meet all the necessary obligations, and prepare required financial statements to be able to qualify for this Program. Our extensive range of accounting and bookkeeping services Craigieburn has been structured to help businesses get over their financial strains the right way.

Join hands with the experts today to revive your business for a new start!