Private ruling: Natural disaster relief and recovery grant
Published: December 2012
Ruling period: Year ended 30 June 2012
Date scheme commenced: 1 July 2011

Ruling: Q1: Are payments that are received under the natural disaster relief and recovery grant taxable? | A1: No.

Relevant facts and circumstances: You and your spouse were affected by a natural disaster. You and your spouse applied for and received a Natural Disaster Relief and Recovery Grant - Primary Producer. The grant is administered through a state government department. You made a drawing on the grant and the funds were credited into your jointly held bank account.

Relevant legislative provisions: Income Tax Assessment Act 1997 Section 59-55

Reasons for decision: Summary: Under section 59-55 of the Income Tax Assessment Act 1997 a recovery grant paid to a primary producer as a result of the floods that occurred in Australia on or after 29 November 2010 is non-assessable non-exempt income. As the grant is deemed to be non-assessable non-exempt under legislation, the amount is not required to be include anywhere in either of your tax returns.

Please check this edited version to be sure that there are no details remaining that you think may allow you to be identified. If you have any concerns about this ruling you wish to discuss, you will find our contact details in the fact sheet.