Highlights
- Victoria and federal governments jointly offer $400 m support package to state’s small and medium businesses
- Indian business owners say grants insufficient, seek more support
- ‘Government must analyse nature of business before giving grants’: Indian businessman
Last week, Prime Minister Scott Morrison said Victorian businesses had borne the brunt and heavy cost of lockdowns that have kept the state and Australia safe.
However, there have been mixed reactions by business owners from the Indian community, many of whom feel the grants may be too little too late.
Indian businesses in the state, like others, have been reeling under the impact of lockdowns and social restrictions. While they welcome the announcement, they also feel the grant amount was not enough to run their operations.
Aloke Kumar, a Melbourne-based Indian origin businessman who runs a hospitality and live entertainment business, told SBS Hindi that his losses have been bigger than the financial grants he has received.
Melbourne-based businessman Aloke Kumar says his losses are bigger than the financial grants he has received. Source: Supplied by Aloke Kumar
“These grants are like a drop in the ocean. Many small and medium business owners I know are surviving because they have savings. A majority of them are left with no income,” he told SBS Hindi.
Mr Kumar added that there is a need for the government to analyse this situation before allocating funds based on the nature of the business and losses incurred.
“A takeaway business is not as affected as is a dine-in restaurant. Our operational costs are way higher while these grants can be more or less the same for small and medium businesses,” he elaborated.
For Ruchi Gupta, who owns a beauty and hair salon, this support package will help pay her staff but the operational costs of her business exceed the amount. Reduced footfall has only added to her problems.
Ruchi Gupta working in her hair salon. Source: Supplied by Ruchi Gupta
“I still have to pay rent, phone, electricity and water bills, council rates and stock expenses. I’m still struggling to manage and pay these because of the low footfall,” she told SBS Hindi.
Ms Gupta added while commercial tenants have been left to mediate directly with landlords to seek rent relief, not all landlords were forthcoming in providing such rental support.
“The package includes a new $85 million Small Business COVID Hardship Fund and $156 million Business Continuity Fund, as well as delivering support for commercial tenants and landlords,” Mr Morrison was quoted in a media statement.
The Victorian and federal governments have jointly offered a $400 million support package to state’s small and medium businesses. Source: AAP Image/David Crosling
“It will also build on Victorian Government support for licenced hospitality and alpine venues, with $70 million for the Licensed Hospitality Venue Fund 2021 and $9.8 million for Alpine Business Support,” the statement added.
Under the Business Continuity Fund, 24 eligible sectors including gyms, cafes, restaurants, catering services and hairdressers will be able to receive $5,000 for being impacted by capacity limits placed on businesses by necessary public health restrictions.
Meanwhile, CBD businesses have been offered an additional grant of up to $2,000 in recognition of the reduced foot traffic due to office density limits.
Echoing similar sentiments is Kamaldip Kahma, a gym owner and instructor in Melbourne. He told SBS Hindi that these grants can cover only a tiny part of his operational costs.
“I pay around $25,000 in rent and there are other expenses on top of that. These grants cover a mere 10 per cent of our total expenses,” said Mr Kahma, who has been using his savings and surviving on income from online classes.
He added that he was hoping to bounce back when Victoria’s fifth lockdown hit.
Backing the Indian business community, Kaushalya Vaghela, Member of Parliament from the Western Metropolitan region, noted that it was the right time to provide relief to these businesses which need extra assistance to get back on their feet.
She told SBS Hindi that she has been working closely with the Indian community, including Indian businesses in her electorate.
“I receive feedback on a regular basis and share that with my parliamentary colleagues to ensure we develop necessary policies to meet the community’s needs. I am pleased to see the positive impacts of the support packages provided by the Victorian government on our local businesses,” Ms Vaghela said.
