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Legislation To Make Disaster Relief Payments Tax Exempt Passes Parliament

Media Releases

Date : 05 February 2020

Author: The Hon Josh Frydenberg MP

The Hon Josh Frydenberg MP
Treasurer

MEDIA RELEASE

Thursday 6 February 2020

LEGISLATION TO MAKE DISASTER RELIEF PAYMENTS TAX EXEMPT PASSES PARLIAMENT

The Morrison Government has today passed legislation through the Parliament to make disaster relief payments being made to individuals and businesses impacted by the devastating bushfires tax exempt.

The new laws ensure that every dollar that is paid out to affected individuals, businesses and primary producers goes to supporting them during these difficult times and to rebuilding their livelihoods.

The exemption extends to payments such as:

The legislation also allows taxpayers to claim income tax deductions for donations to two organisations established in response to the bushfires.

The legislation also gives effect to the Prime Minister’s announcement on 29 December 2019 that the Morrison Government would, in cooperation with the NSW Government, provide tax-free financial support to volunteers in the New South Wales Rural Fire Service who are employed by small or medium businesses and had volunteered for an extended period to assist in combatting the bushfires.

The new laws will also allow taxpayers to claim income tax reductions for donations to two organisations established by the Business Council of Australia in response to the bushfires:

Further information on the support being provided by the Australian Taxation Office can be found on the ATO website. Impacted individuals or businesses can also contact the ATO’s Emergency Support Infoline on 1800 806 218.

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