The Federal Government has expanded the list of State and Territory COVID-19 grant programs that may be tax-free to eligible businesses.

A State or Territory Government COVID-19 grant payment will generally be tax-free if:

1. the payment is received under a grant program that is formally declared to be an eligible program;
2. the recipient carried on a business and had an aggregated turnover of less than $50 million in the income year the payment was received, or in the previous income year; and
3. the payment was received in the 2021 or 2022 income year.

The following Victorian and ACT COVID-19 grant programs have recently been declared as eligible grant programs for these purposes:

• Business Cost Assistance Program Round Two – Top Up (Victoria).
• Business Cost Assistance Program Round Three (Victoria).
• Business Cost Assistance Program Round Four (Victoria).
• Business Cost Assistance Program Round Four – Construction (Victoria).
• Business Cost Assistance Program Round Five (Victoria).
• Commercial Landlord Hardship Fund 3 (Victoria).
• Impacted Public Event Support Program Round Two (Victoria).
• Licensed Hospitality Venue Fund 2021 – Top Up Payments (Victoria).
• Live Performance Support Program (Presenters) Round Two (Victoria).
• Live Performance Support Program (Suppliers) Round Two (Victoria).
• HOMEFRONT 3 (ACT).

This material and contents provided in this publication are informative in nature only. It is not intended to be advice and you should not act specifically on the basis of this information alone. If expert assistance is required, professional advice should be obtained.