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Assessable government industry payments

Last updated 16 February 2017

Did you receive assessable government industry assistance?

No

Go to Other business income.

Yes

Read on.

You need to know

Generally, government credits, grants, rebates, bounties and subsidies are assessable income in the hands of the recipient if they are received in, or in relation to, the carrying on of a business. This generally includes amounts of a capital nature. However, amounts relating to the commencement or cessation of a business may not be assessable income but may give rise to a capital gain.

Examples of assessable government industry assistance are:

  • bounties
  • drought relief
  • employee subsidies
  • export incentive grants
  • fuel grant under the energy grants credits scheme
  • fuel tax credits
  • industry restructuring and adjustment payments
  • producer rebate (wine equalisation tax), and
  • product stewardship (oil) benefit.

For more information, see Taxation Ruling TR 2006/3: Income tax: government payments to industry to assist entities (including individuals) to continue, commence or cease business.

Note: Do not show 'Medicare payments received by medical practices' at this item. Show them at Other business income.

Completing this item

Step 1 Write your total primary production government industry payments received by each business at G item P8 on page 2 of your schedule. Do not show cents.

Note: If you have completed the Gross income from primary production worksheet in Information for primary producers 2008 (NAT 1712), include at G the amount at PP11 on the worksheet.

Step 2 If your assessable primary production government industry payments include a fuel grant under the energy grants credits scheme or fuel tax credits, print D in the TYPE box at the right of the amount at G.

Step 3 Write your total non-primary production government industry payments received by each business at H. Do not show cents.

Step 4 If your assessable non-primary production government industry payments include a fuel grant under the energy grants credits scheme or fuel tax credits, print D in the TYPE box at the right of the amount at H.

Step 5 Add up the amounts you have written at G and H and write the total in the adjacent Totals box.

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