Tax Status of COVID $$$

I’ve been covering the ever changing lockdown support offerings from the various states via newsletter. If you are not receiving this information and would like to, please sign up here. Whilst I am very grateful for any support, the variation between the states from a dollar value and also accessability viewpoint is vast so it’s important to be across what is available to you and your business. The complexity has been the constant changes and updates that have caused confusion and difficult for businesses to apply (I’m looking at you Service NSW) but as we learned with Jobkeeper last year, this is just what happens when things are rolled out quickly and everyone is doing their very best. If you do need assistance breaking down what is available to you, please make a time.

A common misconception is that all of the COVID and lockdown support will be tax free. Sadly, the tax laws just don’t work like that. For a payment to be tax free, legislation has to apply and when support programs are rolled out in a speedy fashion, the legislation often lags behind. The PM recently announced that the COVID-19 disaster payment will be tax free. Other payments such as the Pandemic Leave Disaster payments are taxable.

Right now, it’s only some of the Victorian state grants that are tax free. The recent NSW, QLD and SA grants are not yet declared tax free (but I’m hopeful this will change.) If you are receiving a payment for yourself or your business, please keep this in mind to avoid any nasty surprises at year end.

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