News & Tax Insights

Tax-free government money to combat COVID-19?

Blog Post
State, territory, and the Commonwealth governments are now in the process of providing tax-free grants to businesses to support them during lockdowns imposed to protect public health from the pandemic.  Usually, government grants to support the ongoing operations of a business are assessable income.  With the COVID-19 pandemic, Victoria, NSW, the ACT, to a lesser extent, Queensland and the other locations have all been subject to community and business lockdowns that have decimated business revenues and caused significant losses.   Late last year, Victoria agreed with the Commonwealth to provide tax-free business grants during its extended lockdown.  Parliament amended the 97 Tax Act to make eligible state and territory grants non-assessable, non-exempt income for tax purposes. With the long-running, current lockdown in NSW, the use of those rules has expanded to NSW and potentially, in the future, to the other states and territories.  Also, legislation recently passed to…

CONSULTING ACCOUNTANTS . TAXATION SPECIALISTS . BUSINESS IMPROVEMENT