How to allocate the COVID-19 stimulus package amounts in your bookkeeping
One of the most common questions we are receiving in the last few weeks, is how to allocate the new income amounts received under the Governments COVID-19 stimulus packages, in your accounting software. Regardless of which software you use, the treatment will be the same:
- If you have received the PAYGW Cashflow boost on your BAS, please enter the amount to an 'Other Income' account called “PAYGW Cashflow boost”. Please note, this amount is tax free income to your business, so it will be added back at year end for income tax purposes.
- If you are receiving JobKeeper payments, please create an 'Other Income' account called “JobKeeper payments” and allocate the payments to that account. These payments are taxable income to your business
- If you received the Victorian government grant, please create an 'Other Income' account called “Grants” and allocate the payment to that account. This payment is taxable income to your business.
Please note that No GST applies to any of these amounts.