Last week, the Federal Treasurer announced that COVID-19 disaster payments received by individuals from the 2020-21 income year are tax-free.
You also don’t need to pay tax on some COVID-19 payments from the government to support small businesses. These payments will be non-assessable non-exempt (NANE) income for tax purposes.
For more information on the tax on state, territory and local government assistance, visit the Australian Tax Office website.