Support for the Victorian Building Industry

Tax Insights

With the Victorian Building Industry re-opening this week following its two week COVID shutdown, the Victorian State Government has recently announced a support package for affected businesses in the form of one-off cash grants. 

This comes at a cost for the Victorian budget of $196.6 million.  In announcing this measure, the Victorian Government was quick to point out that this was a Victorian only measure – no support was provided by the Commonwealth Government in relation to this support package.


Eligibility

Eligible building and construction businesses will be able to apply for a one-off cash grant from mid-October as part of the fourth round of the Business Costs Assistance Program. 

To be eligible, a business must: With the Victorian Building Industry re-opening this week following its two week COVID shutdown, the Victorian State Government has recently announced a support package for affected businesses in the form of one-off cash grants.

  • be registered under a relevant construction sector ANZSIC code (see below);
  • have an annual Victorian payroll of less than $10 million;
  • have incurred direct costs as a result of restrictions in place between 21 September 2021 and 4 October 2021 which have not been recovered (either in part or fully); and
  • be GST registered.

Relevant construction sector ANZSIC Codes are:

House Construction

3011

Other Residential Building Construction

3019

Non-Residential Building Construction

3020

Road and Bridge Construction

3101

Other Heavy and Civil Engineering Construction

3109

Land Development and Subdivision

3211

Site Preparation Services

3212

Concreting Services

3221

Bricklaying Services

3222

Roofing Services

3223

Structural Steel Erection Services

3224

Plumbing Services

3231

Electrical Services

3232

Air Conditioning and Heating Services

3233

Fire and Security Alarm Installation Services

3234

Other Building Installation Services

3239

Plastering and Ceiling Services

3241

Carpentry Services

3242

Tiling and Carpeting Services

3243

Painting and Decorating Services

3244

Glazing Services

3245

Landscape Construction Services

3291

Hire of Construction Machinery with Operator

3292

Other Construction Services n.e.c.

3299

Heavy Machinery and Scaffolding Rental and Hiring

6631

Other Motor Vehicle and Transport Equipment Rental and Hiring

6619

 

In addition, eligible businesses must:

  • have a worksite located in metropolitan Melbourne, the City of Greater Geelong, the Mitchell Shire or the Surf Coast Shire;
  • not have been able to operate remotely during the shut down; and
  • not have received any of the following payments:
  • Business Costs Assistance Round 2
  • Business Costs Assistance Round 2 – July extension payment
  • Small Business COVID Hardship Fund

Grants

Eligible businesses will be entitled to one-off cash grants based on the size of the entity’s Victorian payroll. 

These will be:

Payroll

Grant Amount

Sole Trader, no employees

$2,000

< $650,000

$2,800

$650,001 - $3,000,000

$5,600

$3,000,000 - $10,000,000

$8,400

 

For more information

Applications for grants can be made from mid-October, please contact your local RSM adviser today.

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