2021 COVID-19 lockdown relief measures: Federal and Victorian governments announce economic support packages | Practical Law

2021 COVID-19 lockdown relief measures: Federal and Victorian governments announce economic support packages | Practical Law

A summary of the economic and financial support measures announced by the Commonwealth government and Victorian government in response to the public health lockdown restrictions occasioned by the July and August 2021 outbreaks of COVID-19 in Victoria.

2021 COVID-19 lockdown relief measures: Federal and Victorian governments announce economic support packages

by Practical Law Corporate
Published on 05 Oct 2021 • Australia
A summary of the economic and financial support measures announced by the Commonwealth government and Victorian government in response to the public health lockdown restrictions occasioned by the July and August 2021 outbreaks of COVID-19 in Victoria.
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The Commonwealth and Victorian (Vic) governments have announced support packages for individuals and businesses to address the economic effects of the public health lockdown restrictions implemented in Vic on 15 July 2021 and 5 August 2021 due to outbreaks of COVID-19.
The COVID-19 Disaster Payment is available for individuals who have lost at least eight hours of work during the lockdown periods.
The support programs for businesses include:
  • Cash support payments of $2,000 to $3,000 for eligible businesses and sole traders.
  • Automatic grants for certain eligible small and medium-sized businesses.
  • Grants of up to $5,000 for certain eligible businesses that remain impacted by capacity limits set on businesses by public health restrictions.
  • Grants and payments for eligible licensed venues.
  • Rent relief for eligible landlords and tenants.
  • Grants for small businesses that are not eligible for support under existing programs and who have experienced a 70% or greater reduction in revenue.
  • Grants of up to $40,000 for alpine-based businesses in recognition of restricted inter- and intra-state travel during peak winter season.

2021 COVID-19 lockdown relief measures: Commonwealth and Victorian governments announce economic support packages

The federal government (Commonwealth Government) and the Victorian government (Vic Government) have announced economic support packages in response to the public health lockdowns implemented in Victoria on 15 July 2021 and 5 August 2021 due to outbreaks of the 2019 novel coronavirus disease (COVID-19).

COVID-19 Disaster Payment

The COVID-19 Disaster Payment is a lump sum payment to help workers unable to earn income due to a COVID-19 lockdown, hotspot or period of restricted movement, and is subject to an eligibility test.
Details of the COVID-19 Disaster Payment scheme are available at Services Australia: COVID-19 Disaster Payment.
The details of the COVID-19 Disaster Payment as it relates to the lockdown implemented on 15 July 2021 are as follows:
  • Payments of $600 will be made to individuals who lose 20 hours or more of work during the period of the lockdown.
  • Payments of $375 will be made to individuals who lose between eight and up to 20 hours of work during the period of the lockdown.
  • Eligibility for the COVID-19 Disaster Payment will be made available for the period of the lockdown as it applies to each area of the state.
  • The Commonwealth Government will fund the payment for those who live or work in the areas declared as a Commonwealth Hotspot and the Vic Government will fund payments provided to the balance of the state.
  • Payments will be made in arrears on application to Services Australia seven days after the commencement of the lockdown (that is, from Friday, 23 July 2021).
  • No liquid assets test will be applied to the payment at any time.
See the Commonwealth Government's 15 July 2021 media release and the Vic Government's media release for more information.
The details of the COVID-19 Disaster Payment as it relates to the lockdown implemented on 5 August 2021 are as follows:
  • Eligible workers will receive:
    • $750 per week if they lose 20 hours or more of work; or
    • $450 per week if they lose between 8 and less than 20 hours, or a full day of work.
  • The COVID-19 Disaster Payment will be available from Day 1 of any potential lockdown in the future, with claims made from Day 8 in arrears for the previous 7 days. A weekly payment will then be made for the duration of the hotspot declaration.
  • There will be no liquid assets test applied to eligibility for these payments and an individual does not need to run down personal annual leave.
  • Individuals who currently receive an income support payment will receive a weekly payment of $200, in addition to their existing payment, if they can demonstrate they have lost more than 8 hours of work and meet the other eligibility requirements for the COVID-19 Disaster Payment.
On 29 September 2021, the Commonwealth Government announced the phase out of the COVID-19 Disaster Payment.
The details of the COVID-19 Disaster Payment phase out, in line with the National Plan to Transition Australia's COVID-19 Response (National Plan), are as follows:
  • In line with Phase B of the National Plan, once a state or territory reaches 70% full vaccination rate of its population (16 years and older), the automatic renewal of the COVID-19 Disaster Payments will end. Instead, individuals will need to reapply each week to confirm their eligibility.
  • In line with Phase C of the National Plan, once a state or territory reaches 80% full vaccination rate of its population (16 years and older), the COVID-19 Disaster Payment will step down over a period of two weeks before ending. During these two weeks, the COVID-19 Disaster Payment will be as follows:
    • for the first week, $450 for individuals who have lost more than eight hours of work and $100 for individuals who receive income support; and
    • for the second week, $320 for individuals who have lost more than eight hours of work and payments for individuals who receive income support will end.
For more information, see the Commonwealth Government's 29 September 2021 media release.

Lockdown cash support for Victorian businesses

On 16 July 2021, the Vic Government announced that it would provide new cash grants for businesses affected by the July 2021 lockdown through the Licensed Hospitality Venue Fund and Business Costs Assistance Program (Assistance Program). Businesses and sole traders that have received and will receive payments through the Assistance Program for the May-June 2021 lockdown in Victoria will automatically receive new support payments of $3,000 and $2,000, respectively.
See the Vic Government's media release for more information.

Further support packages for Victorian businesses

The Commonwealth and Vic Governments have announced further support packages for Victorian businesses as a result of the July and August 2021 lockdowns.

Business Continuity Fund

The Business Continuity Fund will deliver $5,000 grants to businesses that remain impacted by capacity limits placed on businesses by necessary public health restrictions.
Twenty-four eligible sectors are covered by the fund including:
  • Gyms.
  • Cafes.
  • Restaurants.
  • Catering services.
  • Hairdressers.
Additionally, businesses located in Melbourne's Central Business District (CBD) that are impacted by ongoing restrictions on the number of staff allowed in office buildings are eligible to receive an additional $2,000, recognising reduced foot traffic due to office density limits.
Recipients of grants from the Business Continuity Fund must have received or been eligible for the previous Business Cost Assistance Program.

Business Cost Assistance Program

Round Three
The Business Costs Assistance Program Round Three provides additional support to eligible small to medium businesses in sectors affected by the August 2021 public health restrictions in metropolitan and regional Victoria.
Successful recipients of the Business Costs Assistance Program Round Two and the Business Costs Assistance Program Round Two July Extension will receive an additional $5,600.
Round Four
The Business Costs Assistance Program Round Four will provide automatic payments of between $2,800 and $8,400 a week over September 2021, depending on payroll size.
Round Five
The Business Costs Assistance Program Round Five will provide automatic payments of between $1,000 and $8,400 a week over between 1 and 29 October 2021, depending on payroll size. Businesses that remained closed or severely restricted between 29 October and 13 November 2021 will also receive automatic payments during that time.

Licensed Hospitality Venue Fund 2021

The Licenced Hospitality Venue Fund provides relief for licensed hospitality venues across Victoria.
For the July 2021 lockdown, the relief includes:
  • Grants of up to $20,000 will be made available to support licensed venues as their operations continue to be impacted by the lockdown restrictions.
  • These grants recognise that larger venues depend more on dine-in and have higher operating costs, so need more support than smaller operations.
  • Businesses located in Melbourne's CBD will be eligible to receive an additional $2,000.
  • To receive this funding, venues will need to have received or been eligible for the Licensed Hospitality Venue Fund 2021.
For the August 2021 lockdown through the end of October 2021, the relief includes:
  • Automatic payments of between $5,000 and $20,000 per week for licensed hospitality venues in metropolitan Melbourne that have previously received or been approved grants under the Licensed Hospitality Venue Fund program.
  • The payment amounts will be tiered according to premises capacity:
    • $5,000 for a capacity of up to 99 patrons;
    • $10,000 for a capacity of 100 to 499 patrons; and
    • $20,000 for a capacity of 500-plus.
Licensed Hospitality Venue Fund payments will continue through the first half of November set at reduced rates to reflect lower restrictions in place at that stage under Victoria’s Roadmap: Delivering the National Plan.

Commercial Tenancy Relief Scheme and Landlord Hardship Fund

The Commercial Tenancy Relief Scheme will be reinstated to provide much needed rent relief to small and medium commercial tenants and their landlords, and the Landlord Hardship Fund will provide support to landlords who provide rent relief to eligible tenants.
On 10 August 2021, the Commercial Tenancy Relief Scheme Act 2021 (Vic) (CTRS Act) received Royal Assent. The CTRS Act temporarily allows for the making of regulations to provide rent relief to commercial tenants in Victoria that have experienced a loss in turnover of more than 30% as a result of the COVID-19 pandemic.
For more information on Australian state and territory legislation and legislative instruments relating to commercial tenancies in financial distress due to the impact of the COVID-19 pandemic, see Checklist, COVID-19: Commercial tenancies in financial distress: key Australian legislation, legislative instruments and policies.

Small Business COVID Hardship Fund

A new fund will be established to support small businesses who have not been eligible under existing business support funds.
Small businesses who have experienced a 70 per cent or greater reduction in revenue will be eligible for grants of up to $20,000.

Alpine Business Support Program

The Alpine Business Support Program will deliver grants of up to $40,000 to alpine-based businesses in recognition of restricted inter- and intra-state travel during the peak winter season.
For more information, see the Commonwealth and Vic Governments' joint media releases: