The Federal Government has expanded the list of State and Territory COVID-19 grant programs that may be tax-free to eligible businesses.
A State or Territory Government COVID-19 grant payment will generally be tax-free if:
- the payment is received under a grant program that is formally declared to be an eligible program;
- the recipient carried on a business and had an aggregated turnover of less than $50 million in the income year the payment was received, or in the previous income year; and
- the payment was received in the 2021 or 2022 income year.
The following Victorian and ACT COVID-19 grant programs have recently been declared as eligible grant programs for these purposes:
- Business Cost Assistance Program Round Two – Top Up (Victoria).
- Business Cost Assistance Program Round Three (Victoria).
- Business Cost Assistance Program Round Four (Victoria).
- Business Cost Assistance Program Round Four – Construction (Victoria).
- Business Cost Assistance Program Round Five (Victoria).
- Commercial Landlord Hardship Fund 3 (Victoria).
- Impacted Public Event Support Program Round Two (Victoria).
- Licensed Hospitality Venue Fund 2021 – Top Up Payments (Victoria).
- Live Performance Support Program (Presenters) Round Two (Victoria).
- Live Performance Support Program (Suppliers) Round Two (Victoria).
- HOMEFRONT 3 (ACT).
Disclaimer
This publication is intended as a general commentary only and does not purport to be comprehensive. It should not be regarded as tax advice and you should not act solely on the information contained herein. Please contact AscendPoint to further discuss about your circumstances or concerns.
More COVID-19 business grants are now tax-free