Compensation for natural disasters: The tax consequences

Article

Delany, Tom. 2012. "Compensation for natural disasters: The tax consequences." Taxation in Australia. 46 (6), pp. 248-252.
Article Title

Compensation for natural disasters: The tax consequences

ERA Journal ID19147
Article CategoryArticle
Authors
AuthorDelany, Tom
Journal TitleTaxation in Australia
Journal Citation46 (6), pp. 248-252
Number of Pages5
Year2012
Place of PublicationSydney, Australia
ISSN0494-8343
Web Address (URL)http://www.taxinstitute.com.au/taxation-in-australia/compensation-for-natural-disasters-the-tax-considerations
Abstract

The financial impact of natural disasters (including floods and cyclones) on business taxpayers can be immense and, in some cases, sufficient to result in the business ceasing to operate. As a result of recent natural
disasters, federal and state governments have made certain grants to affected businesses in the form of cash payments and reimbursements. This article reviews the potential application of goods and services tax on the
receipt of such grants, in addition to the entitlement to input tax credits for related acquisitions. This article also reviews the income tax treatment of certain grants and the availability of tax deductions for expenditure related to the grant moneys received.

Keywordscompensation; natural disasters; taxation; Goods and Services Tax; GST; income tax ; reimbursements; government grants; tax deductions; assessable income
ANZSRC Field of Research 2020480106. Taxation law
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Byline AffiliationsSchool of Law
Institution of OriginUniversity of Southern Queensland
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