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Re: supply chain support grants NSW - Grants for up to 50% of the cost of pollen, pollen substitu...

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Hi All, supply chain support grants nsw - Grants for up to 50% of the cost of pollen, pollen substitutes or sugar to a maximum of $16 per hive. My question is client has received 50% of grant received from the NSW Government of $24000. Could you please tell me this was assessable income and also please tell me gst payable on this income?.

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ATO Community Support

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Hi @Babu

 

It depends.

 

Taxpayers are not required to pay tax on any relief recovery payments or benefits provided by the Australian Government in relation to the 2019-2020 bushfires. If the payment is as a result of this, then it won't be reportable. If the payment is as a result outside of this, the grant will be assessable income and will be taxable.

 

Whether GST applies to the grant will depend on if the grant is received in return for a supply or not. Generally, a grant is not a payment for a supply if you are only required to satisfy eligibility criteria to receive the grant, but the Supply Chain Support Grant also requires the funds to be spent in a specific way. Our website advises: You will be making a supply to the government in return for the payment if you...enter into a binding legal obligation to do something. This means GST is payable on the grant.

 

You can read about bushfires 2019–20 and GST and grants on our website, and Supply Chain Support Grants Guidelines on the NSW Government site.

 

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Most helpful response

ATO Community Support

Replies 0

Hi @Babu

 

It depends.

 

Taxpayers are not required to pay tax on any relief recovery payments or benefits provided by the Australian Government in relation to the 2019-2020 bushfires. If the payment is as a result of this, then it won't be reportable. If the payment is as a result outside of this, the grant will be assessable income and will be taxable.

 

Whether GST applies to the grant will depend on if the grant is received in return for a supply or not. Generally, a grant is not a payment for a supply if you are only required to satisfy eligibility criteria to receive the grant, but the Supply Chain Support Grant also requires the funds to be spent in a specific way. Our website advises: You will be making a supply to the government in return for the payment if you...enter into a binding legal obligation to do something. This means GST is payable on the grant.

 

You can read about bushfires 2019–20 and GST and grants on our website, and Supply Chain Support Grants Guidelines on the NSW Government site.