Institute of Certified Bookkeepers

Are Grants received included in the GST Turnover calculation?

The questions

Did the business enter a binding agreement with the provider of the Grant to do or not do something?

Did the business provide a Taxable Supply to the benefit of the provider of the Grant?

Does the business have to account for the spending of the money back to the provider?

Does the business have to refund any money not spent?

The Answers

State Based Grants

Typically, the business support grants by States do not require the provision of a service to the State. They are about support to the business with an understanding that it will be spent on the business.

Typically, there is not an obligation to repay the funds if they are not spent.

Typically, the state-based funds are NOT considered a taxable supply and would NOT be included in the GST Turnover calculation for the purposes of JK 2.

If the state-based grant had a binding obligation to spend in a certain way or was a provision of a service to the state then it is a taxable supply and should be included.

However, state-based grants are considered assessable income.

 

Access the full explanation and references from the ICB JobKeeper 2 Implementation Kit

 

  • 1 October 2020
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