The Treasurer has announced that any disaster relief payments being made to individuals and businesses impacted by the devastating bushfires are tax exempt.
Notably, the exemption will extend to payments such as:
- Disaster Recovery Allowance Payments made to individuals; and
- payments that would otherwise by taxable under the Disaster Recovery Funding Arrangements, such as grants that may be made to small businesses and primary producers.
Editor: This follows on from an announcement by the Prime Minister on 29 December 2019 that the payments made to eligible Rural Fire Service Volunteers (i.e., up to $6,000) will be free from tax.
Presumably, the legislation required for such tax exemptions will be introduced in the next sitting of Parliament.