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Taxation of ESP payments
Employer Support Payments are taxable income under the Income Tax Assessment Act and must be declared in the appropriate Tax Return.
Payments to employers should be declared in the appropriate business tax return.
Payments to self-employed Reservists are made to the member, for the benefit of the business, and should also be declared in the appropriate business tax return. This applies regardless of whether the self-employed member is a sole trader, a partner in a partnership or a member employed by a company in which the member has a controlling interest.
GST is not applicable to Employer Support Payments for service commenced on or after the 1st of September 2005.
GST is not applicable to Employer Support Payments for service commenced on or after the 1st of September 2005.
