Businesses from New South Wales and Victoria no longer need to pay tax on the business support payments, as identified by Federal Treasurer Josh Frydenberg, in a declaration dated 20 August 2021.

Read on to find out what these tax-free support programs are, including the eligibility criteria you must meet.

New South Wales

Victoria

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: income year 2020-2021 or 2021-2022
    • Commonwealth programs: income year 2021-2022.

For more information, visit this ATO webpage.

Let Us Help

If your business has a turnover of over $1 million, ABJ Solutions is offering a complimentary one-hour meeting to help answer questions and model critical decisions with you. Get in touch with us today so that we can help guide you through these challenging times.

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