Pandemic Leave Disaster Payment is an INCOME !!!

It was a nice gesture from the Federal Government to give out up to $750 each week from Centrelink for most taxpayers that went through a horrible time in isolation or quarantine because they have COVID-19 or are a close contact, or were caring for someone with COVID-19.

The money that you received during COVID-19 Lockdown known as COVID Disaster Payment ("CDP") will not be considered assessable income. As such, you do not need to report in your individual tax return 2022.

However, it has been announced that Pandemic Leave Disaster Payment ("PDLP") will be considered as assessable income or for some of us known it as gross income (i.e. PDLP will add up to your TFN and sole trader income).

PLDP won’t appear on your Centrelink payment summary, and it won’t be prefilled in your income tax return in ATO portal or your MyGov. This means you must do both of the following:

• add all PLDP amounts you got for any periods between 1 July 2021 to 30 June 2022; and

• include the total amount in your 2021-22 income tax return.

How to calculate your PLDP

Here are the steps you can take to help you calculate PLDP:

1. Go to your bank account

2. Search under keywords "Ctrlink Payment"

3. Ensure that you check the correct direct credit or transfer as the payment from Centrelink may have been the CDP instead of PLDP

4. Add PLDP amount and let your accountant know so they can add them into your 2022 income tax return

We hope that this dreadful moment will be behind us soon and welcome to 2023 year!

We hope you have a blast year ahead of you!

Sources: https://www.servicesaustralia.gov.au/you-must-declare-pandemic-leave-disaster-payment-taxable-income