Australians who lost work due to Covid lockdowns and business closures could get a big tax windfall – here’s how to find out if you’re one of them
- Australian families who lost work during pandemic set for higher tax returns
- Disaster payments given to Aussies were previously part of taxable income
- Prime Minister Scott Morrison stepped in and made payments non-taxable
- Decision means Australians will be able to claim more money back if lost work
Australian workers who lost work due to Covid lockdowns are set to receive a huge windfall in next year’s tax return.
The federal government confirmed disaster payments for families impacted by the pandemic will not be taxable in next year’s return, providing a huge relief for those disadvantaged by the virus.
The payment was made available in June but the prime minister changed the legislation so individuals will be able to claim back more money in 2022.
‘I’ve made that very clear this morning, back through the system, they won’t be taxable,’ Scott Morrison said
‘JobKeeper, by the way, was. And we are treating this as a disaster in these areas.’
Australian families who lost work due to the ongoing pandemic are set to receive a huge windfall in next year’s tax return after the decision not to make disaster payments taxable
‘I’ve made that very clear this morning, back through the system, they won’t be taxable,’ Scott Morrison said after interjecting in the payment decision making
The government did not say what the payment will cost, but the news will be welcome to struggling families.
The payment was changed from being taxable in June to non-taxable in July after the prime minister decided to intervene.
So far more than 1.8 million Australians have claimed the support payment, which sits at $430 per week if a person lost between eight and 20 hours per week or $750 if a person lost more than 20 hours per week.
Centrelink confirmed the change in a statement, saying residents will not need to include their respective payments in next year’s taxes.
‘The Covid-19 disaster payment is a non-taxable payment, therefore people don’t need to include the amount as assessable income in their tax returns next year,’ they said.
‘For the purposes Child Care Subsidy or Family Tax Benefit, families do not need to include this payment in their family income estimate.’
So far more than 1.8million Australians have claimed the support payment, which currently sits at $430 per week if a person lost between 8 and 20 hours per week or $750 if a person lost more than 20 hours per week
The payment won’t punish people in next year’s return as Australia looks to move into the post-lockdown era of the pandemic.
Nine News reported families could choose to increase their Family Tax Benefit payment this year or claim the money back in their return next year.
‘It’s a double bonus. It’s extremely good news for those recipients,’ Tony Greco from the Institute of Public Accountants told 9News.
‘It’s understandable people may not have realised, the disaster payment is tax-free and its retrospective to the third of June.
‘So you’ve got a double bonus, it’s not taxable for tax purposes nor is it counted towards family tax benefit.’