Income Tax Assessment Act 1997



Division 59 - Particular amounts of non-assessable non-exempt income  

Operative provisions  

SECTION 59-97   State and Territory grants to small business relating to the recovery from the coronavirus known as COVID-19  

A payment an entity receives is not assessable income and is not *exempt income if:

(a)    the entity receives the payment under a grant program administered by:

(i) a State or a Territory; or

(ii) an authority of a State or a Territory; and

(b)    the grant program is declared under subsection (3) to be an eligible program (whether this declaration is made before, on or after the day the entity receives the payment); and


the entity receives the payment in the 2020-21 or 2021-22 *financial year; and

(d)    the entity is a *small business entity, or an entity covered by subsection (2) , for the income year in which the entity receives the payment.

An entity is covered by this subsection for an income year if:

(a)    the entity is not a *small business entity for the income year; and

(b)    the entity would be a small business entity for the income year if:

(i) each reference in Subdivision 328-C (about what is a small business entity) to $10 million were instead a reference to $50 million; and

(ii) the reference in paragraph 328-110(5)(b) to a small business entity were instead a reference to an entity covered by this subsection.

The Minister must, by legislative instrument, declare a grant program to be an eligible program if the Minister is satisfied that:

(a)    the program was first publicly announced on or after 13 September 2020 by the State, Territory or authority that is administering it; and

(b)    the program is, in effect, responding to economic impacts of the coronavirus known as COVID-19; and

(c)    the program is, in effect, directed at supporting businesses:

(i) who are the subject of a public health directive applying to a geographical area in which the businesses operate; and

(ii) whose operations have been significantly disrupted as a result of the public health directive; and

(d)    the State, Territory or authority has requested the program to be declared to be an eligible program under this subsection.

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