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Service changes and updates IR offices, myIR and phone lines (SPK2IR) are unavailable until the morning of Thursday 28 October for planned system maintenance. Find out more

Resurgence Support Payment (RSP) You will not be able to apply for the RSP in myIR until the morning of Thursday 28 October. Businesses affected by the alert level increase that started on 17 August can apply in myIR from 28 October. Applications for a 4th payment round are planned to open on 29 October. Find out more

Resurgence Support Payment (RSP) The government has announced an increase to the amount and frequency of the RSP from 12 November. Find out more

Wage and salary earners paid a lump-sum

If you are an employee and being paid the wage subsidy as a lump-sum by your employer instead of weekly payments there may be some tax implications. Although the lump-sum payment makes up 12 weeks-worth of payments, for tax purposes this treated as earned when you receive it. This makes a difference if you were paid the lump-sum payment on or before 31 March 2021.

If you received the lump-sum before 31 March 2021, income that would have normally been earned in the next tax year (after 31 March 2021) will be included in your income tax assessment for this tax year.

The impacts of this additional income are:

  • that you may be moved into a higher tax bracket which may result in a tax bill when we complete an automatic income assessment at the end of the tax year
  • if, as a result of receiving additional income, your total before tax income for the year exceeds $48,000 you will no longer qualify for the Independent Earner Tax Credit (IETC)
  • the additional income may also impact your entitlement to Working for Families Tax Credits
  • you may also receive a Student Loan bill for underpaying in relation to the amount of income you have received. 

Home-based childcare providers

Information to help you at this time can be found on the self-employed and other individuals page.

Wage subsidy and leave support payments - Issues for self-employed and other individuals

Last updated: 11 Jun 2021
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