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Are COVID-19 support payments taxable?

Started ‎1 July 2020 by
Modified ‎1 July 2020 by

We've put together some information about COVID-19 support payments to help you with your 2020 income tax return.

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.


Do I need to include JobSeeker and the $550 Coronavirus supplement in my income tax return?

Yes. Your JobSeeker payment and the $550 Coronavirus supplement are both taxable income. Centrelink will include them as part of your pre-fill data.


Is my $750 Economic Support Payment taxable?

No. Your $750 Economic Support payment is exempt from tax and doesn’t count as income.


Does my business need to pay tax on the cash flow boosts?

No. We delivered your cash flow boosts as credits in your activity statement system. They are tax-free payments. You don’t need to report or declare any cash flow boosts.


Do I need to pay tax on an early release of super payment?

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. See this thread: COVID Early Super Release Tax Return.


I received a state government COVID-19 support grant for my business. Do I need to pay tax on it?

In most cases, yes. If you receive one of the following grants or payments before 30 June 2020, it's taxable income and you'll need to declare it in your 2020 income tax return:

  • New South Wales Government Small Business COVID-19 Support Grant
  • South Australian Government $10,000 Emergency Cash Grants for Small Businesses
  • South Australian Government Job Accelerator Grant Scheme
  • Victorian Government Business Support Fund
  • Payments under the Northern Territory Government Small Business Survival Fund
  • Northern Territory Government Business Improvement Grant
  • Western Australian Government Small Business grant scheme.


Can't find the answer to your question here?

You can ask the Community or read more information at COVID-19

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