The ATO has provided a list of all the covid-19 grants that are Non-Assessable Non-Exempt (NANE). You will need to confirm with the ATO if the grants you received are taxable or NANE.
You will need to include in your tax return this financial year all income from all sources that is taxable. This may also mean some of the grants you have received.
The list below is not a exhaustive list of grants provided by the government, but a selection of common grants and their tax classification.
| Support | For | Taxable | Next steps |
| COVID-19 Disaster Payments | Individuals unable to earn income because state or territory health orders prevent them working in their usual employment | No | do not include in your tax return |
| Pandemic leave disaster payment | Eligible individuals unable to earn income because they: must self-isolate or quarantine at home are caring for someone with COVID-19 | Yes | include as assessable income in your tax return Services Australia will advise you of the amount received |
| JobKeeper Closed on 28 March 2021 | Employees of eligible businesses and not-for-profits significantly affected by COVID-19 that receive an amount of JobKeeper | Yes | include as assessable income in your tax return at ‘salary or wages’, or as an ‘allowance’ (or top up) for employees |
Which Covid-19 Grants are taxable in the business sector? Here are some that you can read up on.
| Support | For | Taxable | Next Steps |
| Recovery loans to support businesses | Eligible applicants | No | do not include as ‘business income’ in your tax return |
| Payments to support businesses affected by COVID-19 (for example the NSW 2021 COVID-19 JobSaver payment) | Eligible businesses affected by COVID-19 | Read more | payments are taxable, unless eligibility criteria are met that will cause the payment to be non-taxable, read more GST does not apply |
| State government voucher subsidy scheme | Participating businesses affected by COVID-19 | Yes | include as ‘business income’ in your tax return GST reporting applies |
| Payroll tax relief | Eligible businesses | Read more | there are a range of factors you will need to consider, see Payroll tax relief |
| Land tax relief | Businesses provided land tax relief in states and territories impacted by COVID-19 | Read more | there are a range of factors you will need to consider, see Land tax relief |
| Rent relief | Commercial tenants in government-owned properties in some states and territories | Read more | there are a range of factors you will need to consider, see Rent relief |
| Electricity rebates | Businesses offered the rebate | No | do not include as ‘business income’ in your tax return reduce deductions for electricity by the rebate |
| Grants to support the creative economy | Eligible organisations in the arts sector | Yes | include as assessable income in your tax return GST does not apply |
| Concessional loans to support the creative economy | Eligible organisations in the arts sector | No | do not include this loan as assessable income in your tax return GST does not apply |
| Cash flow boost | Eligible small and medium businesses and not-for-profits | No | do not include in your tax return, read more |
| JobKeeper Closed on 28 March 2021 | Eligible businesses, sole traders and not-for-profits significantly affected by COVID-19 | Yes | include as ‘business income’ in your tax return |
| Child care Transition Payment Closed on 27 September 2020 | Approved early childhood education and care providers for 13 July 2020 to 27 September 2020 | Yes | include as ‘business income’ in your tax return the payment is for a GST-free supply |
| Consumer Travel Support program Applications closed 13 March 2021 | Eligible travel agents and tour arrangement service providers | Yes | include as ‘business income’ in your tax return GST does not apply |
For further information, contact us & we’ll be happy to answer any question you may have on the topic.