Have you received a COVID-19 Disaster Payment?

The Australian Government is providing COVID-19 Disaster Payments to eligible individuals. The payments support individuals who are unable to earn income because state or territory health orders stop them from working in their usual employment.

Due to recent law changes, the COVID-19 Disaster Payment has been reclassified as non-assessable, non-exempt (NANE) income.

This means it:

– is a non-taxable payment
– does not need to be included in your tax return.

If you’ve recently applied for the COVID-19 Disaster Payment with Services Australia and received the payment on or after 1 July 2021, you won’t need to include the amount as assessable income in your tax return next year.

If you received a COVID-19 Disaster Payment due to the Greater Melbourne lockdowns in the 2020–21 income year and you haven’t yet lodged your 2020–21 tax return, you don’t need to include the payment as assessable income when you lodge.

Have you already lodged? 

If you have already lodged your 2020–21 tax return and included the payment as assessable income, you should amend your return because these payments are no longer taxable. You may get a refund.

You can amend your tax return online through myGov or your registered tax agent. You can also lodge an amendment form or send a letter. Your amended taxable income will be provided to Services Australia for assessment for family assistance and Child Support purposes.

Please do not hesitate to get in contact with your PTP advisor if you think you return needs to be amended.