The Australian Federal Government has declared several COVID-19 grant programs received in the 2021-22 financial year as exempt from tax.
This means that business owners that have held off putting in their 2021-22 tax return will not need to take into consideration money received from these government grants.
The COVID-19 grant payments around Australia will generally be tax-free if:
- the COVID-19 payment is received under a program that is eligible;
- the recipient is a business owner who had an aggregated turnover of less than $50 million in the same income year or in the previous income year; and
- the payment was received in the 2021-22 financial year.
- the payment was administered by Australian State or Territory governments
The Victorian COVID-19 grant programs that are now eligible are:
- Business Cost Assistance Program Round Two – Top Up.
- Business Cost Assistance Program Round Three.
- Business Cost Assistance Program Round Four.
- Business Cost Assistance Program Round Four – Construction.
- Business Cost Assistance Program Round Five.
- Commercial Landlord Hardship Fund 3.
- Impacted Public Event Support Program Round Two.
- Licensed Hospitality Venue Fund 2021 – Top Up Payments.
- Live Performance Support Program (Presenters) Round Two.
- Live Performance Support Program (Suppliers) Round Two.
For business advice, contact your Aintree Group advisor today!
For more information and to find out what grants are available in other states, click here!