As a small business owner, it is possible that you may have recently received a grant to support your business during difficult times.
If this is the case, it’s important to check if you need to include the payment of a business support grant in your assessable income during tax time.
Usually, grants are considered assessable income, but some may be non-assessable non-exempt (NANE) income and not required to be included in your tax return if certain eligibility criteria are met. Some natural disaster and COVID-19 related grants may fall under this category.
Additionally, deductions can only be claimed for expenses related to NANE grants that directly contribute to earning assessable income, such as wages, rent, and utilities. Expenses associated with obtaining the grant, such as accountant fees, cannot be claimed.
Our team are here to assist with any questions you may have on this topic. Feel free to get in touch at: hello@cotchy.com.au.