Victoria releases new outdoor economy package

The Victorian government has unveiled a new Outdoor Economy Package to build on previous outdoor eating and entertainment packages (in September 2020 and January 2021), which supported creation of parklets and pop-up bars with streamlined council permits.

The Victorian Government committed $54.5 million to the Outdoor Economy Package to help support the costs for thousands of businesses of setting up for street trading, and back councils to provide the necessary infrastructure and support.

Firstly, there is $14.5 million allocated to the COVIDSafe Outdoor Activation Voucher Program to provide more than 7,000 Victorian businesses, community organisations, not-for-profits and trader associations with $2,000 grants when they spend at least that amount to support initiatives such as outdoor hospitality and entertainment .

The vouchers will be valid for expenses including purchasing and hiring marquees, screens and umbrellas, obtaining insurance and promoting outdoor operations.

Hairdressers, beauty services, retail shops, dance studios and gyms will also be eligible to apply for vouchers, meaning they can join restaurants, cafes and bars in harnessing the opportunities of kerbside trading. The Voucher Program will open soon and will be delivered by Business Victoria.

We recommend that any businesses wanting to access the COVIDSafe Outdoor Activation Voucher Program should subscribe to the Business Victoria newsletter (if you have not already done so) for updates and notifications when the program opens.

Secondly, there is $40 million allocated to the COVIDSafe Outdoor Activation Fund to give councils immediate assistance to businesses to operate outdoors, through physical improvements such as new street furniture, landscaping, marquees, planter boxes and public art, as well as entertainment to bring our outdoor precincts to life.

Please do not hesitate to contact your Lowe Lippmann Relationship Partner if you wish to discuss any of these matters further.

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Practice Update – November 2025

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