Small builders and tradespeople throughout Victoria have been left out of a government package to support businesses impacted by the state’s seven day ‘circuit-breaker’ lockdown despite many who operate on occupied residential premises being unable to access work sites.

The Victorian Government yesterday announced a $250.7 million Circuit Breaker Business Support Package to help up to 90,000 businesses that have been affected by the latest lockdown restrictions.

The package includes:

• The $190.01 million second round of the Business Costs Assistance Programunder which grants of $2,500 will be available for eligible businesses directly affected by the restrictions. This includes restaurants and cafes, event suppliers, accommodation providers and non-essential retailers.
• A $40.7 million new round of the Licensed Hospitality Venue Fundthrough which businesses who hold an eligible liquor licence and food certificate can access grants worth $3,500 grant per premises.
• A further $20 million to support operators in the events industry who have incurred losses due to the restrictions (details to be announced shortly).

However, builders and tradespeople are generally not eligible for the measures and will therefore not receive assistance.

This is despite many who operate in areas such as home maintenance or renovations not being able to access premises in order to perform work.

Under the latest restrictions announced last week, all construction work which either relates to new building projects or which is performed on building sites which are not occupied has been able to continue (see lockdown guidance for the construction sector).

For occupied premises, however, all non-emergency construction, renovation or maintenance work has needed to be put on hold.

This includes work in areas such as home renovations (bathrooms/kitchens etc.), pool installations, painting, landscaping, solar installation and garden maintenance.

Operators in such businesses are thus being forced to delay work without receiving support.

Building industry lobby groups expressed their disappointment.

In a statement, Master Builders Association of Victoria CEO Rebecca Casson acknowledged the ongoing support which state and Commonwealth Governments have provided to the industry but expressed disappointment at small builders being left out of the latest measures.

She adds that builders and tradespeople were excluded from previous support packages relating to the Stage 4 lockdowns last year and the snap February lockdowns.

“Unfortunately, when the last round of support was offered to Victorian businesses through the Business Support Fund during the extended Stage 4 lockdown last year, and the February circuit breaker lockdown, small building and construction businesses were not included,” Casson said.

“These businesses are being subjected to as much financial pain and distress as many other small businesses and it is disappointing that they are being excluded.”

In response to questions from Sourceable, Master Builders said that roughly 95 percent of the work for many of the aforementioned businesses is on occupied premises.

Such businesses have needed to close work on these projects during each of the Stage 4 2020 lockdowns, the snap lock-down in February and the current circuit breaker lockdown.

Granted, some staff will be able to work from home and some work is able to be deferred.

With many small businesses considering it unreasonable for staff to take unpaid leave or take annual leave or long service, however, Master Builders says businesses have still needed to pay wages and entitlements throughout the lockdown period despite not being able to progress projects or generate income.

With most working on fixed price contracts, meanwhile, they have little choice but to absorb these costs.

This is coming on top of other pressures such as shortages and price increases for trades along with materials such as timber, steel and plumbing products.

For these reasons, Master Builders argues that many renovations businesses are small and vulnerable to the restrictions imposed.

Nevertheless, their value to the economy should not be underestimated.

Since the start of 2021, there has been an average of around 555 major renovations projects approved throughout the state each week.

Each of these jobs averaged about $116,000 in value.

Casson said these small businesses should receive assistance.

“We appreciate the hospitality and events sectors are hurting, but so are mum and dad builders and tradespeople who are doing everything they can to keep Victorians employed– including apprentices,” she said.

“These businesses are the lifeblood of our economy and right now – just like café and event suppliers – they are not permitted to work.

“Therefore, some equity in State and Federal Government financial support only seems reasonable.”