POPULAR WORDS

Businesses receiving grants from the government, including the Diesel and Alternative Fuels Grant Scheme (DAFGS) need to be aware that potentially 30% of their grant will be automatically lost through tax. This is because money received through the scheme must be included in assessable income. The suggestion is to treat the grant in the cost of goods sold section of the profit and loss statement, by receipting income from the grants in cost of goods sold measures. The $200 assistance certificates must also be included in assessable income but may be offset against purchases. For example, if $350 worth of software is purchased using the certificate, only $150 need be recorded.