Covid-19 Disaster Payment in Australia is now Tax-free!
If you have received payments from Services Australia due to the lock down, there is good news for you!
With Australian states re-entering the lock down, some individuals will be required to lodge an amendment, if they have already completed their tax return for 2020-21. The Covid-19 disaster payment receivers will be able to take home more money, under the JobKeeper Wage Subsidy Program. The income as a support measure will be regarded as a non-assessable non-exempt income. This simply means that you will not be taxed on your Covid-19 relief payments.
Moreover, those who have received the support payment on or after 1st July 2021 wonât be required to include it as an assessable payment anymore in their next yearâs tax return.
Individuals are expected to receive a notification via myGov.
According to The Kalculators director, Kaleem Ulah, âIndividuals must also be aware of the scam-based text messages. It is always a good idea to contact ATO for further confirmationâ.
Due to the original payments being taxed, individuals received less amount as compared to now. Recipients who lost more than 20 hours of work, will now receive the worth of $750 as a support payment. Those, who lost eight to twenty hours of work, will be eligible to receive $450 as a support payment.
Well if you are a business owner, the support payments provided to you, will also be tax-free. However, the condition remains that if they are made under a program that was declared eligible. More importantly, the payments were received in the 2021-22 financial year.
For organisations based in NSW, the state-based JobSaver program recently expanded its eligibility criteria to $250 million. Previously, the criteria were the aggregated turnover to be lesser than $50 million.
According to our director, Madeeha Usman, âThere are many organisations, who are suffering from the lockdown. This will be an essential relief measure for businesses to continue operatingâ.
With the introduction of a new bill being passed by the parliament. The information will be passed to Australian states & territories to determine eligibility while maintaining high standards of compliance.
If you are a business owner or an individual who would like further information, with their tax or support payment. You can speak to our experienced accountants for an expert opinion.
Give us a call on 08 7480 2593 or simply click on schedule a meeting  to book your appointment.
About the Author / By Kaleem Ulah
