Highlights
- The COVID-19 Disaster Payment is not taxable, while the Pandemic Leave is.
- It is your civil duty to return payments you are not eligible for.
- If you are unsure about your eligibility, go to the Services Australia website or give them a call.
'May PERAan' is SBS Filipino's podcast series which features financial experts seeking to answer the most common questions about money and finances.
"When the pandemic hit, a lot of people lost their jobs, so the ATO utilised an 'honesty system' wherein only a tick on a form was enough proof that you lost your job."
Accountant and financial adviser Romulae Gadaoni shares that while the Australian Taxation Office (ATO) didn't do checks in the past, the department now uses data matching to make sure of the veracity of job loss claims.
Listen to the podcast
Romulae shares that different states have different COVID payments available for their residents. The following advice refers to Victoria and he encourages to seek help from Services Australia regarding what aid is available in your state.
COVID-19 Disaster Payment versus Pandemic Leave Disaster Payment
"In the past, both were taxable; but things changed early July. The COVID-19 Disaster Payment is no longer taxable. It became non-assessible, non-exempt income that you don't need to declare on your tax return.
Pandemic Leave Disaster Payment is still taxable income that you need to report on your tax return."
If you come into contact with someone who is COVID-positive, are you eligible for the Pandemic Leave Disaster Payment?
According to Romulae, you are if:
You are forced to isolate which will then prevent you from working.
You are a resident or citizen of Australia.
You are not entitled to any leave.
If you receive payments you aren't eligible for...
"A lot of bigger companies have also been giving back payments to the government once they realised that the pandemic has not affected their businesses," Romulae shares.
In as much as non-eligible companies are expected to return payments, so too are non-eligible individuals.
"If you are not eligible but have received payments, the government will inform you of the mistake and you have an obligation to return the money.
"If you intentionally deceived the government in order to receive aid, that's a different, more serious case."
Romulae stresses that Services Australia and the ATO are in close contact and will therefore know if you've received aid that you are not eligible for.
"The government always releases information about payments; however, if you're still unsure about your eligibility, call up Services Australia."
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Disclaimer: This article is for general information only. For specific financial advice, you should consider seeking independent legal, financial, taxation or other advice to check how the information here relates to your unique circumstances.
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