A $3.1M slap in the face for Victorian business owners

A State Government department error has led to many small hospitality businesses being overpaid in COVID-19 venue support grants, with the government now requesting the business owners repay an estimated $3.1 million.

It's understood that almost 300 businesses in Victoria’s South West region, are affected and have been awarded grants they were not entitled to receive. 

South West Coast MP Roma Britnell said the government sent letters to some grant recipients asking them to repay funds by 16 February.

Ms Britnell said most of these business owners had already used the money to keep themselves in business after the second wave of closures. 

"This is a monumental stuff-up that is causing a great deal of stress for business owners who are really doing it tough," she said.

"These businesses had no idea they had been overpaid, they used the money to pay the bills and to keep operating, but then all of a sudden they get a letter of demand for significant amounts of money to be repaid within a couple of weeks." 

Ms Britnell said many south-west business owners contacted her as they are angry about the government's bungle.

Affected businesses may adopt a repayment plan if required. 

Jaci Hicken, a Gippsland business owner, said she would report the State Government to the Ombudsman after it mistakenly gave her a $20,000 grant and has now requested it be paid back.

"Daniel Andrews used $7.7 million of taxpayers' dollars to defend his government at that inquiry, now he is asking the businesses hardest hit by the consequences of his government's failures to pay back money because of yet another stuff up in his government," Ms Britnell.

"There is a very clear double standard here and it's a double standard that Daniel Andrews must rectify immediately."

 Irit Jackson, 9^th February 2021