Your business may have received a state, territory or Australian Government grant, payment or stimulus as a result of COVID-19. The payment may have been a one-off lump sum or a series of payments.
Although most government grants are taxable and you need to include them as assessable income in your tax return, you don’t have to pay tax on some COVID-19 support payments.
A payment will be non-taxable (non-assessable non-exempt income) if you meet the following 3 criteria:
- you received the payment under an eligible grant or support program, which has been declared as non-assessable non-exempt income
- you carried on a business and have an aggregated turnover under $50 million in the income year the payment was received, or in the previous income year
- you received the payment in the 2020–21 or 2021–22 financial year if it was an eligible state or territory grant, or the 2021–22 financial year if it was part of an eligible Australian Government program.
We've also provided information for individuals who have received government payments, such as COVID-19 Disaster Payments and Pandemic Leave Disaster Payments.
Remember, registered tax agents can help you with your tax.
Find out about
- Tax implications of payments to support businesses
- Eligible COVID-19 business grants and support programs
- COVID-19 support: tax quick guide