Tax Alert - More Victorian COVID grants added to list treated as NANE income

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Tax Alert - More Victorian COVID grants added to list treated as NANE income

Lowe Lippmann Chartered Accountants

More Victorian COVID grants added to list treated as NANE income

The Federal Government has recently announced that various grant programs administered by Victoria and the ACT will be added to the list of eligible grant programs to be treated as being non-assessable non-exempt income (NANE), instead of being treated as assessable income.

The NANE tax treatment under section 59-97 of the Income Tax Assessment Act 1997 is available for the relevant grant payments received in the 2020–21 or 2021–22 income years.

The new eligible grant programs added to the list include the following:

Business Cost Assistance Program Round Four — Construction (Victoria)
Business Cost Assistance Program Round Two — Top Up (Victoria)
Business Cost Assistance Program Round Three (Victoria)
Business Cost Assistance Program Round Four (Victoria)
Business Cost Assistance Program Round Five (Victoria)
Commercial Landlord Hardship Fund 3 (Victoria)
Impacted Public Event Support Program Round Two (Victoria)
Licensed Hospitality Venue Fund Top Up Payments (Victoria)
Live Performance Support Program (Presenters) Round Two (Victoria)
Live Performance Support Program (Suppliers) Round Two (Victoria)
Homefront 3 (ACT).

The new eligible grant programs above now join the original list of eligible grants below, listed state-by-state.

ACT state grants

COVID-19 Business Support Grant

NSW state grants

2021 COVID-19 business grant
2021 COVID-19 JobSaver payment
2021 COVID-19 micro-business grant
NSW Accommodation Support Grant
Commercial Landlord Hardship Grant
NSW Festival Relaunch Package
NSW Performing Arts COVID Support Package
NSW Performing Arts Relaunch Package
2022 Small Business Support Program

QLD state grants

2021 COVID-19 Business Support Grants

SA state grants

COVID-19 Additional Business Support Grant
COVID-19 Business Hardship Grant
COVID-19 Business Support Grant – July 2021
COVID-19 Tourism and Hospitality Support Grant

VIC state grants

Alpine Business Fund
Alpine Resorts Support Program (Streams 1, 2 and 3)
Business Continuity Fund
Business Costs Assistance Program Round Two
Business Costs Assistance Program Round Two – July Extension
Business Support Fund 3
Impacted Public Events Support Program
Independent Cinema Support Program
Licensed Hospitality Venue Fund
Licensed Hospitality Venue Fund 2021
Licensed Hospitality Venue Fund 2021 – July Extension
Live Performance Support Program
Melbourne City Recovery Fund – Small business reactivation grants
Outdoor Eating and Entertainment Package
Small Business COVID Hardship Fund
Sole Trader Support Fund
Sustainable Event Business Program

Given the new eligible grant programs listed above may have distributed the funds during the 2020–21 and/or 2021–22 income years, it may be necessary to lodge amended tax returns to update the NANE tax treatment of the funds received where relevant tax returns have already been lodged.

Please do not hesitate to contact your Lowe Lippmann Relationship Partner if you wish to discuss any of these matters further.

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