The Victorian government has announced another $2.34 billion in economic support measures for businesses impacted by the state's lockdown, which has been extended until at least 70 per cent of the state's residents receive their first dose of a coronavirus vaccine.
"That will provide support for 175,000 businesses that are affected by the lockdown extension," Victorian Minister for Industry Support Martin Pakula said on Saturday.
"I think that certainty will be welcomed by business; and we are certainly very thankful to the Commonwealth for their 50 per cent contribution."
Victorian Minister for Industry Support Martin Pakula speaks to the media. Source: AAP
What aid has been announced?
Depending on the size of their payroll, businesses will be eligible to receive a weekly payment of either $2,800, $5,600 or $8,400 as part of the state's Business Costs Assistance Program.
The Licensed Hospitality Venue Fund payments are also set to continue at their current rates of between $5,000 and $20,000 per week for eligible cafes, bars and restaurants.
The Small Business COVID Hardship Fund will also increase to $20,000 for about 35,000 businesses.
Resort businesses eligible for the Alpine Support Package will also receive an automatic top-up payment between $10,000 and $40,000 for the remainder of the season, with the amount depending on their location and staffing size.
The majority of these payments will be rolled out automatically to eligible businesses.
When will it be rolled out?
The payments will come into effect immediately and will last until 30 September.
The Victorian government estimates 70 per cent of residents will have had at least one dose of the vaccine by 23 September, one week before the payments are due to expire.
The government has indicated that is the point where restrictions might be eased.
"We recognise this is a very difficult time for small and medium-sized businesses, but there is light at the end of the tunnel," federal treasurer Josh Frydenberg said on Saturday.
"Hairdressers, gyms, cafes, tourism operators and many other businesses across the state impacted by these lockdowns will receive this new economic support."
How have business groups reacted?
The Victorian Chamber of Commerce and Industry welcomed the announcement
The group's CEO, Paul Guerra, said the renewed funding comes at a time where morale in the business community is at an "all-time low".
"This funding extension will help businesses to make their way around the Monopoly board and try to hold on until they are able to trade viably again," he said.
However, Mr Guerra also called on the government to provide Victoria's business community with a clear roadmap for reopening.
"We need to get off this COVID-19 treadmill and have a destination to sprint towards," he said.
"It is clear that getting vaccination rates to 70 and then 80 per cent levels is crucial to getting back to COVID-normal and Victorian businesses stand ready to assist in any way we can."
