Are the NSW 2021 Small Business COVID-19 Grants Assessable Income?

Assessable Income or NANE?

The Income Tax Assessment (Eligible State and Territory Covid-19 Economic Recovery Grant Programs) Declaration 2020 has been amended to declare grant programs administered by the States of NSW and Victoria as being “eligible programs” for the purposes of the grants being non-assessable, non-exempt income (NANE) under s 59-97 of the ITAA 1997.

What does this mean?

It means, that it is not included as part of your business income when submitting your Business Activity Statements and/or Income Tax Returns for the relevant year in which the grants were recieved. Therefore no tax is payable upon receipt of those Grants listed below.

NSW State Government announced several COVID-19 Business Grants and Payments during the 2021 Pandemic

The NSW Government is offering 4 types of financial support to businesses across NSW as part of the COVID-19 support package.

They are:

How to apply

Applications for grants must be made through Service NSW.

To apply, businesses will need to have experienced a decline in turnover of 30% or more due to the public health orders issued:

• Small Business Grant - over a minimum 2-week period from 26 June 2021 to 17 July 2021;
• JobSaver Grant - over a minimum 2-week period from 26 June 2021 to 28 August 2021;
• Micro-Business Grant - minimum 2-week period from 26 June 2021 to 28 August 2021;

All compared to, same period in 2019, same period in 2020 or the 2-week period immediately before the Greater Sydney lockdown began, being 12 June to 25 June 2021.

If you business does not meet any of the above requirements,  you  should contact Service NSW to discuss your eligibility and application.