Gov’t Grants – Tax Free

Six Victorian grants confirmed tax exempt. Yippee.

VIC Gov’t Grants Confirmed as Tax Exempt

Hope you all had a wonderful Xmas & New Year break.

For anyone who has been lucky enough to be eligible for VIC Government Grants, we come bearing good news for you.

Last month legislation was passed to make certain grant payments ‘non-assessable, non-exempt’ income (in other words TAX FREE).

Since then, Joshua Money-Tree Frydenberg, has declared the following 6 Victorian grant programs will be included:

  1. Alpine Business Fund – financial support to alpine businesses impacted by the Covid and covers service fees owed to Alpine Resort Management Boards.
  2. Business Support Fund 3 – third round of the Business Support Fund and provides financial support to eligible businesses that must stay closed or operate under restrictions until ‘Covid Normal’.
  3. Licensed Hospitality Venue Fund – financial support to eligible liquor licensees with hospitality venues impacted by restrictions due to Covid.
  4. Melbourne City Recovery Fund (Small Business Reactivation Grants) – one of the components of the Melbourne City Recovery Fund, the Small business reactivation grants, is designed to support businesses to trade safely, including through outdoor trading activities, and to help encourage customers back into Melbourne central city.
  5. Outdoor Eating & Entertainment Package – financial support to eligible businesses to adapt their businesses to outdoor dining and entertainment in order to transition to ‘Covid Normal’.
  6. Sole Trader Support Fund – financial assistance to eligible sole traders who have been impacted by restrictions due to Covid. The assistance can be used towards overhead costs and to help sole traders’ transition to ‘Covid Normal’.

Side note that won’t likely apply to any of you – the tax exempt status only applies to entities with an aggregated turnover of less than $50 million. Fair play.

Hope that helps!

As always, any questions relating to any of these grants or the tax exempt status – please don’t hesitate to let us know.

Justin Araco
Author: Justin Araco

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