Disaster payments to households, small businesses and farmers recovering from the recent Queensland and NSW floods, as well as the Tasmania and Wambelong bushfires, will be made exempt from income tax, said Assistant Treasurer David Bradbury.
The measure was part of the Tax and Superannuation Laws Amendment (2013 Measures No. 2) Bill 2013, a suite of amendments to the tax laws introduced in the Parliament today.
"Those communities that were hardest hit during recent natural disasters deserve a helping hand to get them back on their feet," said Mr Bradbury.
"These amendments to our tax laws will make sure that recovery payments made by the Commonwealth Government to households, small businesses and farmers will not be taxed, meaning more money in the pockets of those that need it most."
Other measures introduced in the bill today included:
- Amending the film tax offsets to restore the intended meaning of 'documentary' following an Administrative Appeals Tribunal decision in 2011.
- Ensuring simplified GST compliance and payment methods for certain small businesses can continue.
- Extending Deductible Gift Recipient Status to National Boer War Memorial Association Incorporated, the Anzac Centenary Public Fund and the Australian Peacekeeping Memorial Project Incorporated, Philanthropy Australia Incorporated, The Conversation Trust, National Congress of Australia's First Peoples Limited.
The amendments will be considered by the House of Representatives over coming weeks.