Australian Small Business and Family Enterprise Ombudsman Kate Carnell has called on the Victorian Government to cover the costs associated with small business closures, following the "devastating" announcement that tough trading restrictions will remain in place until the end of October, at the earliest.

"Devastating": ASBFEO Kate Carnell

Carnell says yesterday’s roadmap announcement by Victorian Premier Daniel Andrews was a devastating blow to thousands of small businesses, many of which now have no other choice but to close their doors forever.

“Under the Victorian Government’s roadmap, many small businesses will not be able to open for another eight weeks at least and that’s only on the condition that there is less than five cases per day as a state-wide average. On that basis, small businesses that were thinking this lockdown would only last for another couple of weeks, now don’t know if they will ever be able to re-open.

“For those struggling small businesses that know they cannot remain viable under these imposed conditions, the Victorian Government needs to step up and help them make the sensible business decision to exit. This means the Victorian Government needs to pay for all break-lease termination fees – not just on the premises but also equipment so small business owners can walk away without further penalties.

“It is unreasonable to expect small businesses to continue to hang on and accumulate debt, given this ongoing forced closure is not fault of their own.

“This is a situation no small business could have planned for. The lockdown extension has forced small businesses into this dire predicament and now the government needs to do the right thing to support them to exit if they cannot afford to hang on.

“The enormity of this lockdown extension and the psychological distress inflicted on small business owners cannot be underestimated. Small business loans are often secured against the family home, so these hard-working small business owners are now faced with gut-wrenching decisions about their future. They need to be supported in every aspect. I encourage all small business owner to seek help if they need it.”

The Partners in Wellbeing telephone hotline is 1300 375 330 and Beyond Blue’s Coronavirus Mental Wellbeing Support Service is at coronavirus.beyondblue.org.au. Our My Business Health web portal also provides free practical resources for small business owners and also links to leading mental health organisations.”

In an update to members about the Victorian roadmap announcement, The Real Media Collective CEO Kellie Northwood said: 

“We did not anticipate much change for the ‘open for on-site work’ businesses and industries in which we are included - Paper, Print, Publishing and ancillary support services. This has been the case and our member businesses can maintain the same practices as they are currently operating under. However, it is critical to maintain, review and regularly communicate to your teams your COVID-Safe Plans. It is compulsory to have an active COVID-Safe Plan when operating in Victoria under the stage 4 restrictions. If you have any queries in regards to your COVID-Safe Plans please contact either hello@thermc.com.au or charles@thermc.com.au as soon as possible and mark in the subject header COVID-Safe Plan – VIC so we can prioritise your request.

“There will be a full analysis and overview of all Victorian announcements, as well as clarifications, commercial lease review and more released in our Tuesday bulletin.”

Details about the reopening roadmap for Metro Melbourne can be found here.

Victoria's chief health officer Brett Sutton says lockdown messures could be eased earlier than expected if case numbers decline ahead of the dates in the roadmap, 

Victoria recorded 41 new coronavirus cases on Monday, the state's lowest single-day increase since June.