Announced last week COVID-19 disaster payments are now treated as tax-free.

Under the change, COVID-19 disaster payments dating back to its introduction on 3 June will now be non-assessable non-exempt income.

This is a significant U-turn and means you receive more money because you keep more of it:

  • Workers who lose 20 or more hours of work a week will receive $750 a week,
  • while those who lose between eight and 20 hours will receive $450.
  • The COVID-19 business support payments i.e. Grants and Job Saver!

Previously all these payments were taxable income, this blog was written to highlight the almost daily changes we face in advising you on these measures.

We have faced changes in the application process through to how the law applies constantly, costing time, efficiency and stress.

But lets all be appreciative of the support and the fact many, but not all of us, are still able to work.

Please call us if you have any questions.
The fantastic VJC Team

General Advice warning: the information in this article is general in nature, it is not advice specific to your needs. If you want to act upon the information in this article then you should seek advice from a qualified professional. VJC WM accepts no liability to any party for acting from this information unless they have sought advice in a formal engagement with VJC WM for this purpose.