Treasury Laws Amendment (COVID-19 Economic Response No. 2) Act 2021

Administered by Department of the Treasury

Legislation au C2021A00079 In force Act

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Treasury Laws Amendment (COVID‑19 Economic Response No. 2) Act 2021

No. 79, 2021

An Act to provide an economic response, and deal with other matters, relating to the coronavirus, and for related purposes

Contents

1 Short title

2 Commencement

3 Schedules

Schedule 1—Amendments relating to Coronavirus economic response payments

Coronavirus Economic Response Package (Payments and Benefits) Act 2020

Schedule 2—Disclosure of tax information to Australian government agencies to facilitate COVID‑19 business support programs

Taxation Administration Act 1953

Schedule 3—Tax‑free treatment of payments from COVID‑19 business support programs

Income Tax Assessment Act 1997

Schedule 4—Modification power

Coronavirus Economic Response Package Omnibus (Measures No. 2) Act 2020

Schedule 5—Tax‑free treatment of COVID‑19 disaster payments

Income Tax Assessment Act 1997

Treasury Laws Amendment (COVID-19 Economic Response No. 2) Act 2021

No. 79, 2021

An Act to provide an economic response, and deal with other matters, relating to the coronavirus, and for related purposes

[Assented to 10 August 2021]

The Parliament of Australia enacts:

1 Short title

This Act is the Treasury Laws Amendment (COVID‑19 Economic Response No. 2) Act 2021.

2 Commencement

(1) Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.

Commencement information
Column 1	Column 2	Column 3
Provisions	Commencement	Date/Details
1. The whole of this Act	The day after this Act receives the Royal Assent.	11 August 2021

Note: This table relates only to the provisions of this Act as originally enacted. It will not be amended to deal with any later amendments of this Act.

(2) Any information in column 3 of the table is not part of this Act. Information may be inserted in this column, or information in it may be edited, in any published version of this Act.

3 Schedules

Legislation that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.

Schedule 1—Amendments relating to Coronavirus economic response payments

Coronavirus Economic Response Package (Payments and Benefits) Act 2020

1 After subsection 7(1A)

Insert:

(1B) The rules may also make provision for and in relation to:

(a) one or more kinds of payments by the Commonwealth to an entity in respect of a time that occurs during the period beginning on 1 July 2021 and ending on 31 December 2022, being payments that are for the purpose of providing financial support to entities that are adversely affected by restrictions imposed under a public health order of a State or Territory to prevent or control the transmission of the coronavirus known as COVID‑19; and

(b) the establishment of a scheme providing for matters relating to one or more of those payments, and matters relating to such a scheme.

Paragraphs (a) and (b) do not limit each other.

2 Subsection 7(2)

Omit “and (1A)”, substitute “, (1A) and (1B)”.

Schedule 2—Disclosure of tax information to Australian government agencies to facilitate COVID‑19 business support programs

Taxation Administration Act 1953

1 Subsection 355‑65(8) in Schedule 1 (at the end of the table)

Add:

an *Australian government agency

is for the purpose of administering a program declared under subsection (10) to be a relevant COVID‑19 business support program.

2 At the end of section 355‑65 in Schedule 1

Add:

(10) For the purposes of item 12 of Table 7 in subsection (8), the Minister may, by legislative instrument, declare a program administered by an *Australian government agency to be a relevant COVID‑19 business support program if the Minister is satisfied that the program is, in effect:

(a) responding to economic impacts of the coronavirus known as COVID‑19; and

(b) directed at supporting *businesses the operations of which have been significantly disrupted as a result of a public health directive.

3 Application of amendments

The amendment made by item 1 of this Schedule applies in relation to records and disclosures of information made after the commencement of that item, whether the information was obtained before, on or after that commencement.

Schedule 3—Tax‑free treatment of payments from COVID‑19 business support programs

Income Tax Assessment Act 1997

1 Section 11‑55 (table item headed “Coronavirus economic response”)

After:

State and Territory grants to small business relating to the recovery from the coronavirus

59‑97

insert:

Commonwealth small business support payments relating to the coronavirus

59‑98

2 After section 59‑97

Insert:

59‑98 Commonwealth small business support payments relating to the coronavirus known as COVID‑19

(1) A payment an entity receives is not assessable income and is not *exempt income if:

(a) the entity receives the payment under a program administered by the Commonwealth or an authority of the Commonwealth; and

(b) the program is declared under subsection (2) to be an eligible program (whether this declaration is made before, on or after the day the entity receives the payment); and

(d) the entity is a *small business entity, or an entity covered by subsection 59‑97(2), for the income year in which the entity receives the payment.

(2) For the purposes of paragraph (1)(b), the Minister may, by legislative instrument, declare a program to be an eligible program if the Minister is satisfied that the program is, in effect:

(a) responding to economic impacts of the coronavirus known as COVID‑19; and

(b) directed at supporting *businesses the operations of which have been significantly disrupted as a result of a public health directive.

3 Application of amendments

The amendments made by this Schedule apply to assessments for income years ending on or after 1 July 2021.

Schedule 4—Modification power

Coronavirus Economic Response Package Omnibus (Measures No. 2) Act 2020

1 Schedule 5

Repeal the Schedule, substitute:

Schedule 5—Modification of information and other requirements

1 Modification of information and other requirements

(1) This item applies in relation to a provision (an affected provision) of an Act or a legislative instrument that requires or permits any of the following matters (a relevant matter):

(a) the giving of information in writing;

(b) the signature of a person;

(d) the recording of information;

(e) the retention of documents or information;

(f) the witnessing of signatures;

(g) the certification of matters by witnesses;

(h) the verification of the identity of witnesses;

(i) the attestation of documents.

(2) A responsible Minister for an affected provision may, by legislative instrument, determine that, to the extent that the affected provision relates to a relevant matter:

(a) the affected provision is varied as specified in the determination in relation to a period specified in the determination; or

(b) the affected provision does not apply in relation to a period specified in the determination; or

(c) the affected provision does not apply, and that another provision specified in the determination applies instead, in relation to a period specified in the determination.

(3) The period specified in a determination made under subitem (2) may be a period that starts before this item commences.

(4) A responsible Minister for an affected provision must not make a determination under subitem (2) in relation to the affected provision unless the responsible Minister is satisfied that the determination is in response to circumstances relating to the coronavirus known as COVID‑19.

(5) For the purposes of this item, a responsible Minister for an affected provision is:

(a) if the affected provision is a provision of an Act—any Minister who administers that Act; or

(b) if the affected provision is a provision of a legislative instrument—any Minister who administers the enabling legislation (within the meaning of the Legislation Act 2003) under which that legislative instrument is made.

(6) A determination made under subitem (2) has effect accordingly.

(7) A determination made under subitem (2) has no operation after 31 December 2022.

(8) This item is repealed at the end of 31 December 2022.

Schedule 5—Tax‑free treatment of COVID‑19 disaster payments

Income Tax Assessment Act 1997

1 Section 11‑55 (before table item headed “demutualisation of friendly society health or life insurers”)

Insert:

COVID‑19 disaster payment

59‑96

2 After section 59‑95

Insert:

59‑96 COVID‑19 disaster payment

A payment an individual receives is not assessable income and is not *exempt income if it is a COVID‑19 disaster payment (within the meaning of the COVID‑19 Disaster Payment (Funding Arrangements) Act 2021).

3 Application of amendments

The amendments made by this Schedule apply to assessments for the 2020‑21 income year and later income years.

[Minister’s second reading speech made in—

House of Representatives on 3 August 2021

(93/21)

Senate on 4 August 2021]

Overview

The Treasury Laws Amendment (COVID-19 Economic Response No. 2) Act 2021, enacted by the Parliament of Australia, was introduced to provide an economic response and address other matters relating to the coronavirus, specifically COVID-19. The Act was assented to on 10 August 2021 and aims to offer financial support to entities adversely affected by public health orders designed to control the transmission of COVID-19. It also provides mechanisms for the disclosure of tax information to facilitate COVID-19 business support programs, tax-free treatment for certain payments from these programs, and modifies information and other requirements to alleviate the economic impact of the pandemic. The policy objective is to support businesses and individuals facing economic hardship due to the pandemic, ensuring that critical aid is delivered effectively and efficiently.

Scope and Application

The Treasury Laws Amendment (COVID‑19 Economic Response No. 2) Act 2021 applies to entities and individuals adversely affected by restrictions imposed under a public health order to prevent or control the transmission of COVID‑19. It primarily focuses on financial support mechanisms and tax-related provisions for businesses and individuals impacted by the pandemic. The Act amends the Coronavirus Economic Response Package (Payments and Benefits) Act 2020 to extend the provision of payments to entities affected by restrictions from 1 July 2021 to 31 December 2022, and introduces provisions for establishing schemes related to these payments. Additionally, the Act modifies the Taxation Administration Act 1953 to allow for the disclosure of tax information to Australian government agencies facilitating COVID‑19 business support programs, and amends the Income Tax Assessment Act 1997 to provide tax-free treatment for certain COVID‑19 business support program payments and COVID‑19 disaster payments. The Act applies nationally across Australia and its provisions commenced on 11 August 2021. The Act also includes a modification power under which certain information and other requirements can be varied or exempted for a specified period in response to COVID‑19 circumstances, with these modifications expiring by 31 December 2022.

Key Provisions

The Treasury Laws Amendment (COVID-19 Economic Response No. 2) Act 2021 (C2021A00079) primarily amends existing Acts to extend and modify economic response measures related to the COVID-19 pandemic. Section 1 of the Act provides the short title, and section 2 details the commencement of the Act, which took effect the day after Royal Assent on 11 August 2021. The Act includes various schedules that amend other Acts to implement specific measures. Schedule 1 amends the Coronavirus Economic Response Package (Payments and Benefits) Act 2020, extending the types of payments available to entities adversely affected by COVID-19 restrictions. It allows for the making of payments between 1 July 2021 and 31 December 2022, and the establishment of schemes for these payments (Schedule 1, item 1). Schedule 2 modifies the Taxation Administration Act 1953 to facilitate the disclosure of tax information to Australian government agencies for COVID-19 business support programs, enabling the declaration of such programs by the Minister (Schedule 2, items 1 and 2). Schedule 3 amends the Income Tax Assessment Act 1997 to provide tax-free treatment for Commonwealth small business support payments made under eligible programs, with the Minister empowered to declare programs as eligible (Schedule 3, items 1 and 2). Schedule 4 introduces a modification power allowing responsible Ministers to alter or waive certain information and documentation requirements for specified provisions in response to COVID-19 (Schedule 4, item 1). Lastly, Schedule 5 amends the Income Tax Assessment Act 1997 to ensure that COVID-19 disaster payments are tax-free (Schedule 5, items 1 and 2). The Act imposes several obligations on the parties and entities it governs. Under Schedule 1, the Commonwealth is required to make specific payments to entities adversely affected by COVID-19 restrictions between 1 July 2021 and 31 December 2022. The Minister is tasked with establishing schemes for these payments (Schedule 1, item 1). Under Schedule 2, the Minister must ensure that tax information is disclosed to Australian government agencies for programs declared as relevant COVID-19 business support programs (Schedule 2, items 1 and 2). Schedule 3 mandates that programs supporting small businesses must be declared eligible by the Minister for the payments to be tax-free (Schedule 3, items 1 and 2). Additionally, under Schedule 4, responsible Ministers must determine and implement variations to information and documentation requirements for specified provisions in response to COVID-19 (Schedule 4, item 1). Finally, Schedule 5 ensures that COVID-19 disaster payments are tax-free (Schedule 5, items 1 and 2). The Act does not explicitly detail offences, penalties, or civil/criminal consequences for breaches of its provisions. However, given the nature of the amendments and the context of the COVID-19 economic response, any breaches of the obligations imposed by the Act could potentially lead to administrative or legal consequences under the relevant Acts being amended. For instance, failure to comply with information disclosure requirements under the Taxation Administration Act 1953 or the Income Tax Assessment Act 1997 could result in penalties under those Acts. The specific penalties would depend on the nature and severity of the breach, as outlined in the respective Acts.

Area of Law: Taxation Law
Instrument: Act
Concepts: Commencement Provisions; Reporting & Disclosure Obligations; Tax-free treatment

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.

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