If your business receives payments from government programs like NDIS, aged care or childcare subsidies, the ATO may already have visibility of those payments.  The ATO has recently reminded taxpayers that income received through Commonwealth government programs must be properly recorded and reported in their tax returns.

These payments often arise where businesses or contractors deliver services funded by government programs, including areas such as:

• Healthcare services
• Disability support under the National Disability Insurance Scheme (NDIS)
• Aged care services
• Childcare and early learning programs

If you receive these types of payments, you have an obligation to:

• Keep accurate records of all payments received; and
• Report this income in your tax return.

The ATO has also strengthened its Government Payments Program data-matching system, which allows it to compare information received from government agencies with what is reported in tax returns.

As part of this program, the ATO recently advised it would be contacting taxpayers and tax agents by email to confirm that income received from government agencies — such as Aged Care Subsidies or NDIS payments — has been correctly declared.

Where discrepancies are detected, the ATO may request clarification or further information. For businesses receiving government-funded payments, accurate reporting is essential to avoid unnecessary reviews or compliance issues. If you receive income through government programs and are unsure how it should be reported, it’s worth reviewing your records now to ensure everything is correctly captured in your tax return.

If you would like a little help, please get in touch with us for assistance.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements. To book an appointment, use our online booking system, give us a call on 07 3289 1700, or email us at reception@rgaaccounting.com.au.We look forward to assisting you this tax season!

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.