If you received the COVID-19 Disaster Payment For Individuals, there are certain things you may need to know about it.
The Australian Government Provided the COVID-19 Disaster Payments to support eligible individuals who cannot earn an income. The restrictions may be due to state/territory health orders ranging from lockdowns, hotspot or movement restrictions.
Recipients received $750 per week if they lost more than 20 hours of work during that week. People who lost between eight and 20 hours of work received $450.
Tax Treatment Changes
Your 2020-21 return may need amending due to the payments reclassification as non-assessable non-exempt (NANE) income. The change could lead to a refund.
With the reclassification of the payments as NANE income, this means:
- The payment is a non-taxable payment
- Your tax return does not need to include this amount.
Due to rising vaccination rates across states and territories, there will be changes in how you can access the payment. You will need to reapply for the payment when vaccination rates pass 70%. At 80%, you will need to reapply if you have previously made a claim for it but will only be available for one or two more weeks (depending on the individual’s circumstances and eligibility).
If you have recently applied for the COVID-19 Disaster Payment with Services Australia and received the payment on/after 1 July 2021, there will be no need to declare it in your tax return.
If you received the payment due to the Greater Melbourne lockdowns during the 2020-21 income year and have yet to lodge your tax return for that period, thereto will be no need to declare it in your tax return.
You can speak with us for assistance with this process, as we are equipped with the skills and knowledge to assist. Let us know how we can best help you by starting the conversation with us.
