Source: Australian Treasurer
The Morrison Government stands by Queensland primary producers, small businesses and non-profit organisations in the wake of the devastating floods earlier this year – last night passing legislation providing an income tax exemption for qualifying disaster recovery grants.
We are working closely with the Queensland Government to provide more than $500 million to support flood-affected communities with the cost of recovery. This support includes:
- grants of up to $50,000 for eligible small businesses and non-profit organisations under the Disaster Recovery Funding Arrangements (DRFA);
- grants of up to $75,000 for eligible primary producers under the DRFA; and
- additional grants of up to $400,000 to be made available to assist eligible primary producers with the cost of restocking, replanting and rebuilding on-farm infrastructure.
Making these grants income tax-free improves business cash flow and ensures no taxpayer will be left with an income tax bill. Every dollar received helps rebuilding and re-establishing operations following the floods.
This measure complements the Government’s comprehensive flood support measures, enabling those affected by the floods to focus on the things that matter most – the security of their family, their property and their stock.
The Government is further supporting primary producers affected by storms in Fassifern Valley, by making storm assistance grants exempt from income tax. The Government will provide $1 million to the Foundation for Rural and Regional Renewal, which will work with the Salvation Army and a local community panel to distribute grants to eligible storm affected primary producers in the area.
This measure will ensure that no Fassifern Valley primary producers are left with an income tax bill as a result of receiving these grants, supporting them in their recovery from the storms.
On Tuesday night, the Government announced it is creating a new $3.9 billion Emergency Response Fund to provide a sustainable source of funding future disaster recovery efforts.