This advice released by the ATO could be useful:
We understand drought can put extra pressure on people and businesses. That’s why we’re making tax easier while times are tough.
Help and support
We can help with:
- tailored payment plans with interest-free periods
- more time to pay your tax
- waiving penalties or interest you might incur during drought.
Call 1800 806 218 to discuss your situation and find out how we can help.
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.
Making donations
If you plan to donate to drought relief, donations of $2.00 or more that are made through a registered charity, will be tax deductible.
Remember, registered tax and BAS agents can help you with your tax.
Find out about: