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Is the 2020 Tasmanian government $2500 small business emergency support grant payment tax exempt?

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Is the 2020 Tasmanian government $2500 small business emergency support grant payment tax exempt?

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Hi @JoJoM ,

 

Generally government grants are assessable income for the business. Please see What to include in your business's assessable income

 

Government payments to continue business are assessable income to be included in the entity's tax return. These include payments to:

- provide income support

- assist with operating costs

- assist due to the loss of anticipated business profits flowing from a contract that is cancelled because of 

  government policy or industry restructure

- allow restructuring to remain viable

- encourage business expansion

 

See TR 2006/3 Government payments to continue business for further reference

 

You don't have to pay GST on a grant unless unless you make a supply in return for the payment.

 

Thanks for posting,

JasonT

1 REPLY 1
Highlighted

Most helpful response

Community Support

Replies 0

Hi @JoJoM ,

 

Generally government grants are assessable income for the business. Please see What to include in your business's assessable income

 

Government payments to continue business are assessable income to be included in the entity's tax return. These include payments to:

- provide income support

- assist with operating costs

- assist due to the loss of anticipated business profits flowing from a contract that is cancelled because of 

  government policy or industry restructure

- allow restructuring to remain viable

- encourage business expansion

 

See TR 2006/3 Government payments to continue business for further reference

 

You don't have to pay GST on a grant unless unless you make a supply in return for the payment.

 

Thanks for posting,

JasonT