Reporting Grants received in your Tax Return
Received a Business Support Grant?
Remember, when it comes to tax time, it’s important to check if you need to include the payment in your assessable income.
Grants are generally treated as assessable income.
However, some grants are formally declared non-assessable non-exempt (NANE) income. This means you don’t need to include these in your tax return if you meet certain eligibility requirements.
You can check what non-assessable non-exempt government grants may be excluded from your tax return. For instance, some natural disaster grants and COVID-19 related grants are considered NANE income, subject to eligibility criteria.
If you did include a grant that’s considered NANE in your 2020–21 tax return, you can amend your return.
Remember, you can only claim deductions for expenses associated with NANE grants if they relate directly to earning assessable income. Assessable income includes things like wages, rent and utilities. You can’t claim expenses related to obtaining the grant, such as accountant fees.
Remember, registered tax agents can help you with your tax.
Article Credited to the ATO, Small Business Newsroom
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Please reach out if you would like to know more about a Grant you have received or for more information on any of the services we provide.
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The information in this newsletter / factsheet is factual but general in nature. It should not and is not to be construed as advice at any level whatsoever. Because it contains general information that has not been tailored to your personal circumstances it may not be suitable information for you. You must always seek personal financial or taxation advice prior to acting on this information. Further, as many of the comments in this newsletter / factsheet are general in nature, anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances.