Exemption for disaster relief payments
The Government has announced that various disaster relief payments received by individuals as a result of the 2019-20 bushfires will be tax exempt. The exemption will apply to the following payments:
- Disaster Recovery Allowance payments
- Payments that would otherwise be taxable under the Disaster Recovery Funding Arrangements, such as grants that may be made to small businesses and primary producers
- Payments made to eligible Rural Fire Service Volunteers for loss of income where they have been called out for extended periods of service.
Ref: TaxWise Business February 2020