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Edited version of your private ruling
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Ruling
Subject: Natural disaster relief and recovery grant
Question
Are payments that are received under the natural disaster relief and recovery grant taxable?
Answer
No.
This ruling applies for the following period
Year ended 30 June 2012
The scheme commences on
1 July 2011
Relevant facts and circumstances
You and your spouse were affected by a natural disaster.
You and your spouse applied for and received a Natural Disaster Relief and Recovery Grant - Primary Producer.
The grant is administered through a state government department.
You made a drawing on the grant and the funds were credited into your jointly held bank account.
Relevant legislative provisions
Income Tax Assessment Act 1997 Section 59-55
Reasons for decision
Under section 59-55 of the Income Tax Assessment Act 1997 a recovery grant paid to a primary producer as a result of the floods that occurred in Australia on or after 29 November 2010 is non-assessable non-exempt income.
As the grant is deemed to be non-assessable non-exempt under legislation, the amount is not required to be include anywhere in either of your tax returns.
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