$367m boost for struggling Melbourne firms
Another $367 million in financial support has been announced for struggling Melbourne businesses enduring the city's extended sixth lockdown.
The extra funding will come from both the state and federal governments and support more than 100,000 predominantly metropolitan Melbourne businesses, Victorian Industry Support and Recovery Minister Martin Pakula said on Thursday.
More than $1 billion has been put into business bank accounts since the May-June lockdown by the two governments.
Mr Pakula said the new money would be delivered by automatic payments and a boost to the hardship fund, which opens to applications on Thursday.
It includes another $271 million for the business costs assistance program, which will give $2800 grants to more than 95,000 businesses, including gyms, restaurants, hairdressers, dance schools and tourism.
Automatic payments will be made to more than 7000 licensed hospitality venues in Melbourne, including $20,000 for businesses with a capacity above 500 patrons, $10,000 for venues with capacity between 100 and 499 and $5000 for those with up to 99 patrons.
Additionally, $41 million will go to the small business hardship fund, allowing grants of up to $10,000 for small and medium-sized business across Victoria.
Mr Pakula said this would support about 18,000 businesses that were not previously eligible for help and had seen a 70 per cent drop in revenue.
State opposition leader Michael O'Brien said the support was "like putting a Band-Aid on a broken leg".
"Too many small businesses just aren't going to be able to cut it, they're not going to be able to survive even with the announcement today," he said, adding businesses need a plan to reopen in a "COVID-safe way".
The new money was welcomed by the Australian Retailers Association, but the body warned businesses would need more support once lockdown ended and called for greater rent protection.
Victoria's Tourism Industry Council called for a "sustained national approach offering consistent support" until a 70 per cent vaccination threshold is reached in Australia.
Workers and eligible sole traders who lost hours due to the lockdown are eligible for COVID-19 disaster payments of up to $750 a week.
This payment has been extended to those on welfare, who will be eligible for $200 a week if they lose more than eight hours of work.
