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Grants reported on a Taxable payments annual report

Last updated 31 May 2020

Government grants paid to you may be included in this information.

Consider the nature of the grant to determine if you need to include it as income in your tax return.

For information about whether a grant is income, read Taxation Ruling TR2006/3 Income tax: government payments to industry If a grant is not ordinary income, there may be other tax implications – such as impacts under the assessable recoupment rules, capital allowance rules or capital gains tax rules.

For each pre-filled grant, indicate the Type of income that best describes the nature of the income. Choose from:

myTax will show the grant at your selected section, to assist you as you enter relevant information at that section.

If you indicate the Type of income as Non-assessable for this year, keep a record of the amount if it impacts future years – such as if it:

  • reduces the adjustable value of a depreciating asset
  • reduces the pool balance of depreciating assets
  • reduces the cost base of a CGT asset
  • is exempt income – which reduces the amount of losses you carry forward to claim in future years.

Ensure you take such amounts into account appropriately when preparing future returns.