Article by Avant Group - VIC State Budget Update – Opportunities for Business

VIC State Budget Update – Opportunities for Business

Posted: November 25, 2020

The Victorian Stage Budget for FY20/21 has been announced, with a suite of stimulus and funding opportunities for businesses.

The budget has a strong focus on economic recovery, job creation, infrastructure and investment attraction, which has been welcomed by Victorian business groups.

A summary of the key budget measures for business include:

Programs aimed at business growth and to assist emerging industries

• $31.8m export recovery plan
• $321.7m for a circular economy policy and plan to transform Victoria’s recycling sector
• $20m to establish the Australian MedTech Manufacturing Centre
• $40m to establish the Industry Recovery and Growth Fund
• $681.9m for projects to drive cheaper and cleaner energy
• $65m to grow and modernise Victorian agribusiness
• $60m Manufacturing and Industry Development Fund

Programs aimed at employment, training and job creation

• $631.5m to meet anticipated demand for eligible students to undertake training to enhance their skills and employment opportunities
• $33.1m for the Big Build training pathway program to enhance the impact of the Major Projects Skills Guarantee Jobs, Skills and Pathways program to support students with vocational and applied learning pathways
• $74.8m to retrain Victorians for high-priority industries & $155.5m to reskill and upskill those particularly affected by economic disruption
• $19.3m for the Apprenticeships Growth Strategy

Infrastructure and construction programs

• $320m for Health Infrastructure Funds
• $13.7m to streamline and simplify procurement processes
• $2b for stage 1 of the Geelong Fast Rail
• Funding for 100 Next Generation Trams
• $10m for the Royal Melbourne Hospital redevelopment planning
• $5.3b for more than 12,000 Social Housing dwellings
• $892.2m to upgrade 123 schools across the state and
• $122.4m for new school construction
• $108.7m for a road maintenance blitz across the state
• $2.2b for the Suburban Rail Loop

Tourism, the arts and events industry

• $20m Regional Events Fund
• $27.9m for the Victorian Regional Travel Voucher Scheme
• $150m Regional Tourism Infrastructure Fund
• $120.6m Regional Tourism Investment Fund
• $106.5m to support Victoria’s visitor economy recovery

Costs for business

• $45.9m to expand the solar panel rebate and loans scheme to small businesses
• $74.8m regulatory reform package
• A payroll tax credit of 10 cents for every dollar of wages paid in 2020-21 and 2021-22 above the previous year’s wages (for employers with wages below $10 million)

Business innovation

• $12.9m providing R&D cash flow loans for SMEs
• $25.8m to establish a Venture Growth Fund to inject more capital into the scaleup sector
• $70.5m for Start-up Capital Fund & investment for female founded start-ups
• $525.9m for Victoria’s Digital Future
• $2 billion Breakthrough Victoria Fund