ATO logo

Reporting natural disaster payments and grants in your tax return

Find out if you need to report disaster payments and grants in your tax return and if you need to pay tax on them.

Last updated 9 April 2026

Disaster relief payments

If you've been affected by a natural disaster, you may receive a relief payment from:

  • a local, state or federal government agency
  • a charity or community group
  • your employer
  • family or friends.

One-off assistance payments are generally taxable, however some may be tax-free. You may still need to report the tax-free payments in your tax return.

Some payments are non-assessable non-exempt (NANE) income, which means you don't need to include it in your tax return.

If you use an assistance payment to purchase items for your business, you may be able to claim a tax deduction.

For more information, see Disaster support grants and deductions for business.

Government disaster recovery payments

You may need to report and pay tax on government grants, payments and stimulus that you receive from federal, state or territory, or local governments, including:

Australian Government Disaster Recovery Payment

If you receive an Australian Government Disaster Recovery Payment (DRP), it will be treated as exempt income. This means you don't have to report it in your tax return.

However, if you have carried forward losses from an earlier income year, you will need to reduce your carried-forward loss by the amount of the DRP you received.

Disaster Recovery Allowance and Natural Disaster Relief and Recovery Arrangements

Service Australia may provide you with one of the following short-term allowances to support you if you lose income as a direct result of a natural disaster:

These payments are taxable and you need to report these in your tax return.

The government may declare that, for some natural disasters, DRA and NDRRA payments are exempt income. This means you don't have to report it in your tax return.

However, if you have carried forward losses from an earlier income year, you will need to reduce your carried-forward loss by the amount of exempt income you received.

Services Australia has more information about help for people affected by a natural disaster eventExternal Link.

Reporting disaster recovery allowances in your tax return

Services Australia will report payments from the DRA and NDRRA on your annual payment summary. When completing your tax return, enter the payment amounts you received at:

  • Australian Government allowances and payments if you lodge online using myTax
  • Question 5 – Australian Government allowances and payments if you lodge by paper
  • Question 5A – Australian Government allowances and payments if you're a registered tax professional.

The DRA Top-up, NZDRA and NZDRA Top-up will not show on your annual payment summary or be prefilled in your tax return. You need to manually include these payments in your tax return. When completing your income tax return, enter the payment amounts you received at:

  • Australian Government special payments if you lodge online using myTax
  • Question 24 – Other income if you lodge by paper
  • Question 24V if you’re a registered tax professional. Alternatively, add the Income Details schedule at field Australian government benefit taxable amount (INCDTLS128), with field Australian government benefit type (INCDTLS126) set to Special.

For more information on how to check the amount of payments you received, go to the Services Australia's page regarding payments that don't show on your Centrelink payment summaryExternal Link.

If you received the Disaster Recovery Allowance, you may be eligible to receive the beneficiary tax offset. This may reduce the amount of tax you pay.

New Zealand Ex-gratia recovery payments

The New Zealand ex-gratia Disaster Recovery Payment (PDF, 243KB)External Link provides a one-off financial assistance payment to eligible New Zealand citizens residing in Australia who hold a 'non-protected' Special Category (subclass 444) visa who have been adversely affected by a major disaster.

The tax treatment of ex-gratia recovery payments (ex-gratia payments are made by favour and not because of legal obligation) depends on the specific circumstances of the payments. In some recent cases, the government has decided to exempt such payments from tax. The government decides on the tax status of each particular type of payment.

Services Australia will send you a letter confirming the amount of New Zealand ex-gratia Disaster Recovery Payment you received.

Bushfire relief recovery payments

Any bushfire relief recovery or benefits are NANE income if they are provided by any level of government, including: 

  • Australian Government
  • state
  • territory
  • municipal corporation
  • local governing body.

Payments to volunteer firefighters

You are not required to pay tax on government support payments you received as a volunteer firefighter.

You don't need to include these payments in your tax return.

Centrelink payments

Regular Centrelink payments remain taxable, unless exempted by the government.

State and territory government assistance grants

State and territory grants may be activated for certain localised events. To find out more information, refer to your state or territory government websites.

Assistance from charities and community groups

If you receive assistance from a charitable organisation, the payment you receive is not taxable. These payments have no GST implications.

These payments are not taxable because:

  • the organisations make these payments voluntarily to help you with the basic necessities of life
  • you have no right or entitlement to the payment
  • the payment is a gift to you from the organisation.

Assistance from your employer

Emergency assistance from your employer − for example, one-off emergency relief payments where nothing is expected in return − is not taxable. These payments don't have to be included in your tax return.

An employer:

  • is not required to withhold tax from a payment that is not taxable
  • that gives emergency assistance to an employee can claim it as a tax deduction as a business expense.

Gifts from family or friends

If you receive emergency help in the form of giftsExternal Link from family and friends, you don't need to report it in your tax return.

 

QC67560