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