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ATO Provides Guidance on Government Grants, Payments, and Stimulus During COVID-19 — Orbitax Tax News & Alerts

The Australian Taxation Office (ATO) has announced guidance on government grants, payments, and stimulus during COVID-19, including a Quick guide to the tax treatment of COVID-19 payments. For businesses, the tax treatment is summarized as follows:

  • Recovery loans to support businesses:
    • do not include as 'business income' in your tax return
  • Payments to support businesses affected by COVID-19 (for example the NSW 2021 COVID-19 JobSaver payment):
    • payments are taxable, unless eligibility criteria are met that will cause the payment to be non-taxable, read more
    • GST does not apply
  • State government voucher subsidy scheme:
    • include as 'business income' in your tax return
    • GST reporting applies
  • Payroll tax relief:
  • Land tax relief:
  • Rent relief:
    • there are a range of factors you will need to consider, see Rent relief
  • Electricity rebates:
    • do not include as 'business income' in your tax return
    • reduce deductions for electricity by the rebate
  • Grants to support the creative economy:
    • include as assessable income in your tax return
    • GST does not apply
  • Concessional loans to support the creative economy:
    • do not include this loan as assessable income in your tax return
    • GST does not apply
  • Cash flow boost:
  • Job Keeper (Closed on 28 March 2021):
    • include as 'business income' in your tax return
  • Child care Transition Payment (Closed on 27 September 2020):
    • include as 'business income' in your tax return
    • the payment is for a GST-free supply
  • Consumer Travel Support program (Applications closed 13 March 2021):
    • include as 'business income' in your tax return
    • GST does not apply