We understand drought can put extra pressure on people and businesses. The ATO is making tax easier while times are tough by helping with:
- Tailored payment plans with interest-free periods
- more time to pay your tax
- waiving penalties or interest you might incur during drought
Receiving Drought Assistance Payments
It is important to understand possible tax implications on payments you receive.
- Amounts for emergency relief, such as food and personal clothing, are not classed as income and will not be taxed. Deductions can’t be claimed for the costs of buying these items.
- Amounts to help your business are income and subject to tax. However there will usually be no tax to pay if you spend those amounts on expenses you have in relation to your business, such as purchasing feed for your livestock.
Call McFillin & Partners to discuss your situation and find out how we can help.