• Industry groups fear Victorian businesses could close their doors for good if the state’s snap COVID-19 lockdown extends past Thursday.
• The lockdown, designed to slow a new coronavirus outbreak in the community, was met with a $250 million emergency funding package from the State Government.
• But as case numbers climb, fears are mounting that the lockdown could be extended, leading government support to expire before the lockdown does.
• Visit Business Insider Australia’s homepage for more stories.

Victorian businesses will shut for good if the state’s latest coronavirus lockdown extends past seven days, industry players have warned, amid fears the State Government’s $250 million support package is insufficient to protect vulnerable firms past Thursday.

On Sunday, Acting Premier James Merlino revealed Victoria will direct hundreds of millions of dollars to businesses impacted by the week-long lockdown, which was originally slated to end at midnight on June 3.

Grants of $2,500 are available to businesses forced to close their doors over the lockout period, while $3,500 grants are available to hard-hit hospitality venues which hold eligible liquor licence and food certificates. $20 million will be directed towards the events industry.

The measure was intended as an emergency lifeline to Victorian businesses, which have already endured three lockdowns since the start of the pandemic.

However, whether the lockdown measures will actually lift on Thursday is uncertain.

Speaking to reporters on Monday, Merlino said “this outbreak may well get worse before it gets better.” The latest infection figures suggest that may be the case: Victoria counted nine new cases of community transmission in the 24 hours to midnight on Monday, and health authorities have now listed 329 potential exposure sites.

With Victoria yet to quash the outbreak, and Prime Minister Scott Morrison reticent to provide further federal support, industry leaders are concerned emergency funding will expire before the lockdown.

“These payments are all well and good this week,” said Josh Paterson, a business partner at workplace safety provider Employsure.

“But with the high cost of rent and stock, coupled with the cost of paying employees, if this lockdown were to be extended, it would have a significant impact on small business.”

Governments must be flexible with crisis expenditure, Paterson added, saying the consequences of an extended lockdown could be drastic for businesses left without extra support.

“Small business is the key to economic recovery, and if that support were to stop, struggling employers will have no choice but to close their doors,” he said.

Other business groups had already telegraphed fears for the lockdown outlasting the state’s $250 million package.

In a Sunday statement, Paul Zahra, CEO of Australian Retailers Association, called for “ongoing, targeted support” in the absence of JobKeeper — the $90 billion payroll subsidy which the Federal Government retired in March.

“The virus remains an ongoing threat – outbreaks can still occur and future state-imposed lockdowns are a possibility,” Zahra said. “With that being the case, we need to ensure government lifelines remain in place.”

The Victorian Chamber of Commerce has advocated for a “broad-based support package to help cover rent, loss of perishables, wages and costs” arising from the snap lockdown.

Michele O’Neil, president of the Australian Council of Trade Unions, also called for further federal support on Sunday.

“Working people should be able to rely on their Government for support when they need it,” she said.

“The Morrison Government this week is compounding the issues faced by hundreds of thousands of the most vulnerable workers in Victoria.”

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