Have you received a government support payment?

Learn which government support payments aren’t taxable.

If you’ve received a government support grant or payment recently to help your business recover from a natural disaster, it’s important to check if you need to report the payment in your assessable income.

Grants are generally treated as assessable income and you may be able to claim deductions if you use these payments to:

• purchase replacement trading stock or new assets
• repair your business premises and fit-out
• pay for other business expenses.

However, some grants are non-assessable, non-exempt (NANE) income. This means you don’t need to include them in your tax return if you meet certain eligibility requirements.

NANE grants include:

• natural disaster grants
• water infrastructure payments.

You can only claim deductions for expenses associated with NANE grants if they relate directly to earning your assessable income. You can’t claim expenses related to obtaining the grant, such as accountant fees.

We understand that unexpected circumstances, such as natural disasters, can impact how you run your business. This is why the ATO offers a range of tools and services to help small business owners get their tax and super right.

To find out more about the support ATO provides, visit ATO’s SB support page.

For mental health support, there is the NewAccess for Small Business Owners program. It helps small business owners stay on track with free and confidential practical support.

Remember, RA Advisory registered tax professional can help you with your taxes.

Source: ATO