Taxation Determination

TD 98/28

Income tax: are grants received by small business from the Commonwealth Government Gas Emergency Assistance Fund assessable income?

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FOI status:

may be releasedFOI number: I 1018010

1. Yes. The payments are either assessable as income according to ordinary concepts or, being a bounty or subsidy, specifically assessable as statutory income under section 15-10 of the Income Tax Assessment Act 1997.

2. Eligibility for a grant does not necessarily mean the relevant expenses are allowable income tax deductions. Whether eligible business costs for grant purposes are deductible for tax purposes continues to be determined according to the provisions of the tax law.

Commissioner of Taxation
16 December 1998

References

ATO references:
NO NAT 98/11832-3

Subject References:
bounties and subsidies
government grants income
income

Legislative References:
ITAA97 15-10