More COVID-19 business grants are now tax-free

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).