Victoria announces new $200 million support package

Lowe Lippmann Chartered Accountants

The Victorian Government has announced a major stimulus injection of $200 million to target key sectors led by hospitality and tourism and will help businesses recover strongly from the effects of the Omicron variant.


The package includes the following supports for Victorian residents:


  • New and extended $100 million voucher scheme will provide rebates to Victorians for entertainment, dining and travel;
  • This includes a $10 million round of Melbourne Money to be delivered with the City of Melbourne, enticing diners back to city cafes, bars and restaurants by reimbursing part of their bill;
  • New $30 million round of the Victorian Travel Voucher Scheme will encourage even more people to holiday at home and spend on accommodation, attractions and tours; and
  • New entertainment voucher scheme will provide $30 million in rebates for tickets to the theatre, live music, cinemas, museums, galleries, conferences, exhibitions and other events across Victoria.


The package includes the following supports for businesses:


  • $60 million Ventilation Voucher Program to help small businesses purchase equipment and upgrades to reduce the spread of COVID-19 in the workplace and improve customer confidence;
  • $34.2 million of Jobs Victoria funding to place workers in over 1,500 jobs across hospitality, warehousing and logistics, tourism and food processing;
  • Further $5 million to extend the Small Business Digital Adaptation Program, providing rebates of up to $1,200 so businesses can access a range of digital tools; and
  • Extension of the Business Recovery and Resilience Mentoring Program with the Victorian Chamber of Commerce and Industry so more small businesses have access to coaching.


For more information on the package and when each program opens, visit vic.gov.au/business-stimulus-package.

 


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

September 9, 2025
Costs incurred in acquiring / forming a business. Further to the recent blog about capitalisation of costs when acquiring an asset, we have received a number of questions in relation to costs incurred in setting up / purchasing a business. Formation costs on establishing a business: These costs would include: Incorporation fees ASIC registration fees Legal fees Business name registration Pre-operating costs Pre-opening costs. The relevant standard for these costs is AASB 138 Intangible Assets and paragraph 69a confirms that these start-up costs are expensed when incurred. There is no identifiable asset controlled by the entity when the costs are incurred as the entity does not exist. Business acquisition costs These costs would include: Legal and accounting fees Due diligence and valuation costs Stamp duty Advisory or brokerage fees Project management costs related to the acquisition Internal costs allocated to the transaction In contrast to the asset acquisition discussed previously, AASB 3 Business Combinations requires all acquisition costs to be expensed as incurred. This means that they are not included as part of the consideration paid and therefore do not affect calculated goodwill.  Entities purchasing businesses should be aware that these costs are not able to be capitalised as they can often be substantial, and purchasers often do not expect the costs to be taken directly to the income statement
September 8, 2025
ATO to include tax 'debts on hold' in taxpayer account balances From August 2025, the Australian Taxation Office ( ATO ) is progressively including 'debts on hold' in relevant taxpayer ATO account balances. A 'debt on hold' is an outstanding tax debt where the ATO has previously paused debt collection actions. Tax debts will generally be placed on hold where the ATO decides it is not cost effective to collect the debt at the time. The ATO is currently required by law to offset such 'debts on hold' against any refunds or credits the taxpayer is entitled to. The difficulty with these debts is that the ATO has not traditionally recorded them on taxpayer's ATO account balances. Taxpayers with 'debts on hold' of $100 or more will receive (or their tax agent will receive) a letter before it is added to their ATO account balance (which can be viewed in the ATO's online services or the statement of account). Taxpayers with a 'debt on hold' of less than $100 will not receive a letter, but the debt will be included in their ATO account balance. The ATO has advised it will remit the general interest charge ( GIC ) that is applied to 'debts on hold' for periods where they have not been included in account balances. This means that taxpayers have not been charged GIC for this period. The ATO will stop remitting GIC six months from the day the taxpayer's 'debt on hold' is included in their account balance. After this, GIC will start to apply.
August 26, 2025
How do we account for the costs incurred when acquiring an asset? When we acquire an asset such as property, plant and equipment, intangibles or inventory there are often significant other costs incurred as part of the purchase process, including delivery, stamp duty, installation fees. Whether we capitalise these to the value of the asset or expense them as incurred can make a significant difference to an entity’s reported position or performance. Since we have accounting standards for specific assets, the treatment can vary depending on the asset and the relevant standard. A summary of some common expenses and their treatment under four accounting standards has been included below. The four standards considered are: AASB 102 Inventories AASB 116 Property, Plant and Equipment AASB 138 Intangible Assets AASB 140 Investment Property.
More Posts