Worried you’re missing part of your refund? Remember, the low and middle income tax offset isn’t a refund on its own – it’s used to offset (or reduce) the amount of tax you pay. The offset amount you may be entitled to is automatically applied and could range between $255-$1080, depending on things like your taxable income and how much tax you’ve paid.
We've put together some information about COVID-19 support payments to help you with your 2021 income tax return.
Are JobKeeper payments taxable? Where should I include them in my tax return?
Yes. JobKeeper payments are taxable income and you need to report them to us.
For employees, your employer will report Jobkeeper payments to us. They may appear as part of your salary and wage income on your tax return.
For company tax returns, you should declare JobKeeper payments under:
Item 6: Calculation of total profit or loss
Label Q: Assessable government industry payments
As a sole trader, you should include JobKeeper payments in your individual tax return under:
Section: Net income or loss from business
Subsection: Primary production or Non-primary production (as appropriate) – Business income
Label: Assessable government industry payments
As a trust or partnership, you should include JobKeeper payments under:
Item 5: Business income and expenses
Label E or F (as appropriate): Assessable government industry payments
Are JobSeeker and Coronavirus supplements taxable?
Yes. Your JobSeeker payment and the $550, $250 and $150 Coronavirus supplements are taxable income. Centrelink will include them as part of your pre-fill data.
Are the $750 and $250 Economic Support payments taxable?
No. Your $750 and $250 Economic Support payments are exempt from tax and don’t count as income.
Do I need to include JobKeeper in my income tax return?
JobKeeper payments are considered taxable income. Your employer will report them to us along with the tax they withheld. These payments will be part of your pre-fill data and may appear separately or as part of your salary and wage income. If you are a sole trader you declare the JobKeeper payments as income.
I accessed some of my super early – is that taxable?
No. You don’t pay tax on an amount released under COVID-19 Early Release of Super scheme and you don’t include it in your tax return.
Are cash flow boost amounts taxable?
No. We delivered your cash flow boosts as credits in your activity statement system. They are tax-free payments so you don’t need to report or declare them.
I received a state, territory or local government COVID-19 support grant for my business – is that taxable?
In most cases, yes. If you received a grant or payment to support your business during COVID-19, it's taxable income and you'll need to declare it in your income tax return.
There are a small number of grants which have been declared by the Minister not to be taxable. If you receive one of these grants, you don’t need to include it in your assessable income.
Are JobMaker Hiring Credit payments taxable?
Yes. If you’re a business or employer, you need to declare Jobmaker Hiring Credits as assessable government industry payments in your tax return.