Melbourne Business, Interrupted

The Victorian state government has once again butted heads with the federal government’s approach to COVID-19. Despite the state’s acting premier James Merlino announcing a $250.7m Circuit Breaker Business Support Package, there is a large gap in whom that can help. It is predicted that the lockdown will cost the state $700m, but the federal government has made no formal plans to help bridge that gap.

“The economic outbreak of the Victorian outbreak is not insignificant,” admitted federal treasurer Josh Frydenberg. He said the budget accounted for such measures, in addition to saying that the federal government would work closely with the Victorian state government.

But the advice given to struggling Victorians by the trade minister Dan Tehan was less than satisfactory to Merlino and state treasurer Tim Pallas. Tehan, who appeared on ABC’s political discussion program Insiders, offered little more than what a Google search for Centrelink payments could have answered.

“Well, you can go to Centrelink, and if you’re eligible, if you’ve lost a complete week’s work… then you might be eligible for one of these emergency health payments.” Host of Insiders David Speers clarified Tehan’s statement as to whether this was a new initiative, given that the current Centrelink support payments eligibility requirements included either testing positive or being a close contact. Tehan fired back that the federal government had already provided $45bn support to Victoria during the pandemic, and then reiterated his previous statement.

The disconnect in priorities between the federal and state government is an ongoing source of tension, with small businesses and start-ups often bearing the brunt of it. But the issues don’t stop there; the Victorian state government Opposition Leader Michael O’Brien criticised Merlino’s $250.7m measure for not going far enough. This is because, according to O’Brien, less than a fifth of businesses would benefit from the Circuit Breaker Package.

“Attacking the federal government … doesn’t get Victorians back to work, it doesn’t keep the virus under control,” said O’Brien at a press conference earlier this week.

“Some small businesses will simply not survive this lockdown.”