The Australian Taxation Office (ATO) will undertake a review of the Victorian Fairness Fund payments to the taxi and hire car industry following a query from Eastern Metro MP Rod Barton.
Earlier this month Mr Barton wrote to the ATO on behalf of a number of former licence holders who were facing huge tax obligations following fairness fund payments.
“Many in the industry are bleeding. They lost their licences and their source of income and were left with loan debts for property that no longer exists and then many faced tax debt on fairness fund payments,” said Mr Barton.
The Fairness Fund was established to provide means tested financial support for licence holders experiencing financial hardship. These payments were assessed as income and have been taxed accordingly.
Mr Barton said he didn’t want to get too many hopes up until the ATO had the opportunity to fully review the nature of payments.
“I would encourage anyone who received fairness fund payments to seek professional tax advice to determine whether the ATO review might affect them.
“It’s very important that anyone paying off tax debts resulting from the fairness fund payouts continue to meet their obligations,” he said.
More information – ATO – Victorian taxi industry Fairness Fund payments