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Bushfire tax assistance

Stewart, Tracy & Mylon • Feb 02, 2020

WHAT THE TAX?!! 
Bushfire tax assistance

A bill to provide the tax assistance previously announced by the Government in relation to the 2019/20 bushfires and to update the list of deductible gift recipients has been introduced into parliament.

Bushfire assistance

Schedule 1 of the  Treasury Laws Amendment (2019/20 Bushfire Tax Assistance) Bill 2020  amends ITAA 1997 to make:

•         Government support payments to volunteer firefighters in relation to the 2019/20 bushfires non-assessable non-exempt income, and

•         all relief and recovery payments and benefits provided by Australian governments in relation to the 2019/20 bushfires non-assessable non-exempt income.

Affected payments include payments of Disaster Recovery Allowance relating to the bushfires under the  Social Security Act 1991  and payments by the states or territories relating to the bushfires under the Disaster Recovery Funding Arrangements 2018.

These amendments will apply to the 2019/20 income year and later income years.

The non-assessable non-exempt income tax treatment for payments to volunteer firefighters was  announced  by the Prime Minister on 29 December 2019 and the Treasurer  announced  the non-assessable non-exempt income tax treatment for all relief and recovery payments and benefits on 8 January 2020.

Deductible gift recipients

Schedule 2 of the Bill amends ITAA 1997 to allow the following entities to be deductible gift recipients under the income tax law:

•         Australian Volunteers Support Trust, and

•         Community Rebuilding Trust.

These amendments will apply to gifts made in relation to the 2019/20 income year and later income years.

This measure has not been previously announced.

Information sourced using CCH iknow

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