Businesses from New South Wales and Victoria no longer need to pay tax on selected business support payments. Read on to find out what these tax-free support programs are, including the eligibility criteria you must meet.
New South Wales
- 2021 COVID-19 Business Grant – one-time payment to support eligible businesses impacted by NSW stay-at-home orders since June 26.
- 2021 COVID-19 JobSaver Payment – weekly cash flow boost to help businesses save jobs during the lockdown.
- 2021 COVID-19 Micro-Business Grant – fortnightly cash flow support for businesses that do not meet the minimum aggregated annual turnover required for the JobSaver Program.
- NSW Performing Arts COVID Support Package – monthly financial support for venues, producers or promoters affected by performance cancellations or postponements during the lockdown.
Victoria
- Business Continuity Fund – for businesses affected by capacity limits due to the pandemic restrictions.
- Business Costs Assistance Program Round Two (July Extension) – for businesses affected by the restrictions and have not received payments from the Business Costs Assistance Program Round Two.
- Licensed Hospitality Venue Fund 2021 (July Extension) – for affected licensed hospitality venues with no prior application or funding from the initial Licenced Hospitality Venue Fund 2021.
- Small Business COVID-Hardship Fund – for impacted small businesses that are not eligible under existing business support funds.
- Alpine Resorts Support Program (Streams 1, 2, and 3) – a support program meant for businesses located within the Victorian Alpine regions.
Under the declaration, these payments will be considered as non-assessable non-exempt (NANE) income and are not subject to income tax. Read the full text of the declaration here.
Eligibility
The payments you receive will only be tax-free if it is NANE income and have met the following criteria:
- The payment is under any of the programs listed above.
- You have an aggregated turnover of less than $50 million in the income year you receive the payment, as follows:
- State or territory grants: the income year 2020-2021 or 2021-2022
- Commonwealth programs: the income year 2021-2022.
For the complete list of tax-free business support payments in Australia, visit this ATO webpage.
Let Us Help
If you need help in preparing and lodging your taxes, ABJ Solutions is here to help. In partnership with the specialised tax firm CMPartners, we strive to deliver the best tax results for you and to support your business. Contact us today or visit our tax and compliance page for more information on our tax services for SMEs.
