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Tax consequence for covid-19 support

Initiate

Views 2959

Replies 4

Hi there,

 

May I know the tax treatment for the following:

1. Boosting cash flow - not assessable income, no GST but is it to be included in G1 for BAS?

2. Jobkeeper payment - assessable income, no GST but is it to be included in G1 for BAS?

3. Business support fund from DJPR ($10,000) - assessable income? Any GST? to be included in G1 for BAS?

 

Thanks,

Polly

1 ACCEPTED SOLUTION

Accepted Solutions

Most helpful response

Devotee

Replies 3

1 No

2 No

3 Assessable income, no GSt & not on BAS

4 REPLIES 4

Most helpful response

Devotee

Replies 3

1 No

2 No

3 Assessable income, no GSt & not on BAS

Initiate

Replies 2

Hi @SM2304 , thank you for your answer to @Pollykeung , it is very helpful. Regarding the 3. Business Support Fund, I received this advice from Victoria Business team: 

The grant is categorized as a non-taxable supply where GST is not applicable.

The Business Support Fund should classify as GST Free Income thus appearing on your BAS. However it can also be considered as Assessable Income because it is a government grant that has contributed to carrying the business.

https://www.ato.gov.au/Business/Income-and-deductions-for-business/Assessable-income/What-income-to-...

 

Your answer related to number 3, "not on BAS", is it because there are some rules about it being Assessable Income that it can be treated as BAS Excluded ?


@SM2304 wrote:

1 No

2 No

3 Assessable income, no GSt & not on BAS


 

I'm new

Replies 1

Hi

so in general

Business support fund is GST free but is a assessable income

 

Devotee

Replies 0

Yes