You May Need To Amend Your Tax Return If You Received The COVID-19 Disaster Payment For Individuals

Posted on 25 October '21 by , under tax.

If you were the recipient of the COVID-19 Disaster Payments For Individuals due to your situation resulting from the impact of COVID-19, there are certain things you may need to know about it.

The COVID-19 Disaster Payments were provided by the Australian Government to support eligible individuals who are unable to earn an income due to state/territory health orders preventing them from working. This may be due to lockdowns, hotspot or movement restrictions.

Recipients of the payment received $750 per week if they lost more than 20 hours of work during that week, and received $450 if they lost between eight and 20 hours of work.

Your tax return may need to be adjusted, as the payment has been reclassified as non-assessable non-exempt (NANE) income.

With the reclassification of the payments as NANE income, this means:

  • The payment is a non-taxable payment
  • The payment does not need to be included in your tax return.

Due to the rising vaccination rates across states and territories, there will be changes in the way individuals can access the payment. At 70% of individuals aged 16 or over at fully vaccinated status, the payment will need to be reapplied for. At 80%, the payment will need to be reapplied for if you have previously made a claim for it, but will only be available for one or two more weeks (depending on the individual’s circumstances and eligibility).

If you have recently applied for the COVID-19 Disaster Payment with Services Australia and received the payment on/after 1 July 2021, it will not need to be included in your tax return.

If you received the payment as a result of the Greater Melbourne lockdowns during the 2020-21 income year, and have yet to lodge your tax return for that period, the payment does not need to be included.

However, if you have already lodged your return for 2020-21 and included the payment as assessable income, your return will need to be amended due to its reclassification as NANE. This could lead to a refund.

You can speak with us for assistance with this process, as we are equipped with the skills and knowledge to assist. Let us know how we can best help you by starting the conversation with us.