Let's shed some light on this topic. Generally, these payments are non-taxable as they match expenses over time. However, it's crucial to understand that expenses covered by the grant are also non-deductible. If you've received a grant, it's important to ensure proper allocation of funds.

Additionally, if you're registered for GST, returning GST on the claim is necessary. Not registered for GST? Then we’d suggest discussing the 'principal purpose test' with us.

Navigating the complexities of grants, subsidies, and taxation can be overwhelming, especially when your expertise lies in your industry. At Walsh & Associates, we're here to simplify the process and provide expert guidance tailored to your business.

Let's work together to ensure compliance and maximize your financial benefits. Reach out to us for a consultation today.