Support for small business owners after the recent floods

Managing Senior Accountant - Chesterton Accounting

Taxpayers that have been affected by the recent floods in NSW and QLD states will have flood support available from the ATO. This support will include automatic lodgement deferrals for those in affected local government areas as well as payment plan options for any debts owing. The ATO emergency support line is 1800 806 218 and can be used to speak to a support officer regarding the support available for taxpayers.

Monthly tax tip:

Australians are unfortunately affected by many natural disasters but grants and recovery support payments are usually available. If a taxpayer has been affected by drought, flood/fire, or other natural disaster then they may receive a payment from a local, state, or federal agency and each payment has a different tax consequence. Australian Government Disaster Recovery Payments (DRP’s) are treated as exempt income, meaning it is not taxable, but it does need to be included in the recipient’s tax return. Examples of non-taxable payments that aren’t included in the recipient’s tax return are assistance payments from a charity or community group as well as gifts from family and friends. It’s important to be aware of the tax implications of any support payments that you may receive so that income can be correctly reported and taxed, and extra tax is avoided. If a taxable support payment is received, then this will affect your total taxable income and the rate of income tax that is paid so adjustments may be required if paying tax instalments. Any payments received throughout the year should be discussed with your accountant for tax planning measures.

If you would like to schedule a consultation with us then please jump onto our website where you can see our availabilities and book a time that suits you.

Managing Senior Accountant - Chesterton Accounting