Understanding the Tax Implications of Natural Disaster Relief Payments
Some Government Support Payments May Be Non-Taxable — Check Before Lodging Your Tax Return
Taxpayers should be aware that some natural disaster relief payments are not taxable.
Businesses that have received a government support payment because of a natural disaster (such as a major weather event) should check if they need to include this as assessable income in their tax return before they lodge (although they may not need to pay tax on the payment).
Provided that they meet the criteria, taxpayers can treat some support payments as ‘non-assessable, non-exempt income’, which means they do not need to include them in their tax return.
Taxpayers can refer to the ATO’s website (or check with us) for more information in this regard, including in relation to the criteria that needs to be satisfied.
Need tax help?
For assistance interpreting these tax requirements and how they may affect your business or individual circumstances, please contact the Omnis Group team in West Perth on 08 9380 3555.
