✦ Plain-English Summary

Treasury Laws Amendment (2019-20 Bushfire Tax Assistance) Bill 2020

What it does

The government is making two changes to tax law to help people affected by the 2019-20 bushfires. First, volunteers who lost income while fighting fires can receive compensation payments without having to pay tax on them. Second, disaster relief payments and other aid given to bushfire victims won't be counted as taxable income.

Why it matters

People who stepped up as volunteer firefighters during the bushfires often had to take unpaid leave, losing wages. This law lets them receive government compensation for those lost earnings without getting hit with a tax bill on top of their losses. Similarly, bushfire victims receiving emergency aid won't be penalised with extra tax obligations while they're rebuilding.

Key details

• Volunteer firefighter payments: Only eligible if the payment comes from a State or Territory (not private sources) under an agreement with the Commonwealth, and was made on or after 1 January 2020
• What doesn't qualify: If you were already being paid as an employee firefighter or receiving workers' compensation, this doesn't apply to you
• When it took effect: The day after the bill received Royal Assent (so retroactively from January 2020)

Official Description

Amends the Income Tax Assessment Act 1997 in relation to the 2019-20 bushfires to: make government support payments to volunteer firefighters and relief and recovery payments and non-cash benefits provided by Australian governments non-assessable non-exempt income; and update the list of deductible gift recipients to include the Australian Volunteers Support Trust and the Community Rebuilding Trust.

No formal division recorded

This bill passed by voice vote — parliament agreed without calling a formal count. A division is only recorded when a member explicitly requests one.

No votes yet.

No votes were recorded for this bill.