The Assistant Treasurer Senator Rod Kemp, today announced that the Government will amend the law to exempt from income tax, the business assistance grants paid to eligible businesses devastated by Cyclones Elaine and Vance in March 1999.
The grants are up to $10,000 each and are paid from the Cyclones Elaine and Vance Trust Fund.
The Trust Fund was established to provide general relief and business assistance to the cyclone affected regions and is helping to restore the local communities by getting business started again, so that income can start to flow and people can begin to rebuild.
This decision recognises the extraordinary hardship inflicted by the cyclones and, moreover, the threat to the communities’ recovery prospects of businesses being unable to re-establish.
This concession is not generally available and does not represent a change of normal Government policy – that grants to business are assessable income.
Legislation to give effect to the Government’s decision will be introduced as soon as possible.
MELBOURNE
7 July 1999
Contact Officers: Matthew Guy Assistant Treasurer’s Office (03) 9650 7274