Victorian Government announces $534 million support package for businesses

The Victorian Government has announced a $534 million support package for businesses impacted by the latest lockdown.

The package includes:

• $5000 support grants for more than 80,000 eligible businesses within the lockdown area
• $30 million fund for hardest hit hospitality businesses and the nighttime economy
• $36 million for mental health support for business owners
• $20 million fund for CBD businesses hit by loss of foot traffic
• $40 million fund for regional tourism businesses

Victoria’s Treasurer Tim Pallas has conceded early optimism over the impact the coronavirus pandemic would have on the state economy is now gone, and says it will take years to recover from the economic hit.

Treasurer Tim Pallas this morning revealed the grim outlook as he announced another $534 million financial support package for the businesses hit hardest by the COVID-19 shutdown.

Treasurer Tim Pallas also said the state's unemployment rate could peak at 11 per cent and gross state product could decline by about 14 per cent relative to pre-pandemic forecasts.

"We are expecting that there will be literally billions of dollars written off the expected size of the Victorian economy," he said.

"It will take some years before we see that level of economic activity come back."

He said the new restrictions were necessary to slow the spread of the virus but apologised to Victorians for the pain and hardship they would have to endure in coming weeks.

Mr Pallas said the new business support package would allow businesses to benefit from extended payroll tax deferral.

"Eligible businesses with payrolls up to $10 million can defer their liabilities for the first half of the 2020-21 financial year," he added.