Earlier this week the Federal Government announced a $250 million package to assist Australia's arts and entertainment industry in recovering from the COVID-19 pandemic over the next 12 months.

The package includes $75 million of capital funding to help production and event businesses put on new festivals, concerts, tours and events as social distancing restrictions ease. Grants of between $75,000 and $2 million will be available.

While many people within the industry were excited about the announcement, one Ballarat music venue has said the funding won't do much to help the local music scene.

Owner of The Eastern Hotel, Matt Stone, says the announcement will assist some large scale organisations within the industry but will leave small venues, like his, looking for more.

"It's opened up some competitive tenders and opportunities for more bank loans but I don't really see it as an actual stimulus. Most of those announcements right now are helping out the big players."

Mr Stone added he still holds out hope that the Victorian Government will produce some sort of financial assistance package for music venues on the back of the 'Save Our Scene' petition.

The petition has become the largest online petition in the history of the Victorian Government with more than 17,000 signatures.

"(Save Our Scene) has been great, it's increased the awareness about the help venues need and we're getting support from all angles of the community," Mr Stone continued.

"It really showcases how loved the music industry is locally so we just need that support financially."

One person who didn't share Mr Stone's opinion is Commerce Ballarat chief executive Jodie Gillett, who believes the announcement is a great step towards helping the industry.

"Commerce Ballarat is always going to get behind support for any industry that has been seriously affected by COVID-19," she said.

"That assistance is critical... We want everyone to be there when this is all over."

She added the the funding has the potential to help bring large scale events such as the Red Hot Summer Tour and Spilt Milk to the region and was critical in helping local artists and Ballarat's economy.

"These large events are critical. We need the performers to be supported and the large events help support them and help to drive the economy."

In a statement, Prime Minister Scott Morrison said the package would help the "show back on the road."

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