Note
- all of these are BAS excluded / N-T items for purposes of GST reporting
- these grants DO NOT go towards your loss schedule
Government incentive | Income Tax treatment | Reference |
Cashflow boost | Not taxable | Also, the cash-flow boost is tax-free and can be excluded from business income.” - AccountantsDaily.com.au You do not need to pay tax on the amount of the cash flow boost and the cash flow boost is not subject to GST because there is no supply for the payment. |
Jobkeeper payment | Taxable | “Another COVID-19-related issue this year is where a sole trader is receiving JobKeeper as an active participant. This represents income and needs to be included as part of their business income - AccountantsDaily.com.au |
Jobseeker payment | Taxable | “Those who have lost their employment this year and have received JobSeeker will need to wait for Services Australia to load this information into the pre-fill as this entitlement represents income which is taxable and needs to be added to other income. - AccountantsDaily.com.au |
Land tax discount | Taxable | |
Early release of superannuation | Not taxable | https://www.ato.gov.au/Individuals/Tax-return/2020/Before-you-start/Amounts-that-you-do-not-pay-tax-on-2020/ |
State government grants | Depends | Bushfire grants was clearly stated to be non-assessable and exempt-incomeThe Australian Government has made the [bushfire] grant assistance received under this scheme non-assessable, non-exempt income. - NSW small business bushfire support However, all other grants will be assessable/income-taxable. This will include the NSW Covid19 small business grant. Generally, government credits, grants, rebates, bounties and subsidies are assessable income of the recipient if they are received in, or in relation to, the carrying on of a business. This generally includes amounts of a capital nature. - ATO |
https://www.australianunity.com.au/wealth/covid-19/tax-planning-strategies-2020