COVID and Natural Disaster Payments – What’s Taxable and What’s Not?

As seen in Woopi News August 2022

Pandemic Leave Disaster Paymenttaxable payment. The amounts received were either $450 or $750 depending on the hours of work lost. This payment was to support individuals in certain states who couldn’t earn an income because either they had to self isolate or quarantine at home or were caring for someone with Covid 19.  These amounts are taxable and needs to be manually included in your tax return at Other Income – Australian Government Special Payment. This amount is not automatically pre filling into tax returns, however we have been warned that this will be data matched in the future.

Covid 19 Disaster Paymentnot taxable. These ongoing payments were administered through Services Australia to provide support to individuals who were unable to earn their income because state or territory health orders prevented them working in their usual employment.  This payment initially wasn’t available to people in our LGA, however as the restrictions spread across the state the payment opened to additional LGAs.

Cost of Living Paymentnot taxable. A $250 one-off payment distributed to eligible individuals in April 2022 from Services Australia.  This was an automatic payment to those that were eligible, there was no need to apply.

Natural Disaster Assistance Payments – not taxable

  • Australian Government Disaster Recovery Payment ($1000 per eligible adult and $400 per eligible child)
  • Australian Government Disaster Recover Payment – Special Supplement for NSW floods ($2000 per eligible adult and $800 per eligible child) for selected LGAs.

Disaster Recover Allowance – taxable payments.  This was a short term allowance from Services Australia for support if you lost income as a direct result of a natural disaster.  An allowance was paid for a maximum of 13 weeks to eligible individuals including employees, sole traders, and primary producers.

If you received any of these payments and are unsure of how to include these in your tax return please make an appointment with an accountant to assist you to prepare your tax return.

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