Received A Business Support Grant?

You may have received a business support grant recently to help your business through tough times.

Remember, when it comes to tax time, it’s important to check if you need to include the payment in your assessable income.

Grants are generally treated as assessable income.

However, some grants are formally declared non-assessable non-exempt (NANE) income. This means you don’t need to include these in your tax return if you meet certain eligibility requirements.

You can check what non-assessable non-exempt government grants may be excluded from your tax return. For instance, some natural disaster grants and COVID-19 related grants are considered NANE income, subject to eligibility criteria.

If you did include a grant that’s considered NANE in your 2020–21 tax return, you can amend your return.

Remember, you can only claim deductions for expenses associated with NANE grants if they relate directly to earning assessable income. Assessable income includes things like wages, rent and utilities. You can’t claim expenses related to obtaining the grant, such as accountant fees.

Remember, registered tax agents can help you with your tax.

Source: ATO