Generally, government credits, grants, rebates, bounties and subsidies are assessable income 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 give rise to a capital gain.
Examples of assessable government industry assistance are:
- employee subsidies
- export incentive grants
- fuel tax credits
- industry restructuring and adjustment payments
- producer rebate (wine equalisation tax)
- alcohol manufacturer refund
- 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.
Do not include Medicare payments received by medical practices here. Include them at Other business income.
If you are a primary producer, you must include the amounts shown at PP11 on your primary production worksheet.