Some welcome news for many businesses in New South Wales and Victoria, with some key COVID-19 business support programs in these lockdown-impacted states now tax-free.
Earlier in August, legislation was passed where Treasurer Josh Frydenberg could identify state and territory business support programs that would be eligible for non-assessable non-exempt (NANE) income status. Payments will be considered a NANE income relating to an eligible program, in the current financial year, and accessed by business with an aggregated turnover of less than $50 million.
The NSW eligible grants for the NANE income treatment:
- 2021 COVID-19 business grant
- 2021 COVID-19 JobSaver payment
- 2021 COVID-19 micro-business grant
- NSW Performing Arts COVID Support Package
The Victorian eligible grant programs for the NANE income treatment:
- Alpine Resorts Support Program (Streams 1, 2 and 3);
- Business Continuity Fund;
- Business Costs Assistance Program Round Two - July Extension;
- Licenced Hospitality Venue Fund 2021 – July Extension; and
- Small Business COVID Hardship Fund.
There are specific requirements to meet to access the NANE income treatment – including turnover threshold – so please get in touch if you want to see if your business is eligible for this tax-free support.