Hardship payment

The one-off hardship payment is a singular payment of $3000 specifically for native timber employees working in Community Forestry. The payment is available to employees who have experienced significant hardship due to the end of native timber harvesting and have not been receiving or received any other government payments.

Eligible categories

  • Community forestry license holder or employee.
  • Seed collector.

Relocation Reimbursement Payments

The Worker Support Program will reimburse eligible employees and families for relocation costs of up to $45,000. The Relocation Reimbursement Payment can be tailored to accommodate an employee's specific moving expenses.

Eligibility

To be eligible for a Relocation Reimbursement Payment, you first must have been made genuinely redundant, or your employer ended your casual employment contract within the last 12 months and show that you have secured employment at a worksite located 50 kilometres or more away from your current residence.

Submission of two quotes along with an invoice is necessary for some costs to be reimbursed. The reimbursement will cover the costs of the most economical option chosen after considering the provided quotes. Your case manager will work with you regarding which items will need to be evidenced with more than one quote when making a claim for reimbursement.

What can be reimbursed?

The following categories of costs are eligible for reimbursement.

Requires an invoice only

Travel costs

Requires two quotes and an invoice

  • Removalists and removalist insurance
  • Truck hire
  • Storage
  • Trailer hire
  • Gardening fees
  • Cleaning fees
  • Pet boarding fees (up to one month)

Requires an invoice only

  • Reasonable lease-breaking costs incurred at current residence, as charged by estate agents.
  • Rental bond of new place of residence.
  • Relocation associated legal costs (conveyancing and related legal fees).
  • Reimbursement of stamp duty.

To qualify for stamp duty reimbursement, the employee must demonstrate that they have sold a residence at their previous location, occupied a new residence within 15 months of the effective date of redundancy or the ending of their casual contract, and provided satisfactory evidence of the related expenses. Please note that stamp duty reimbursement is not available if the employee occupies a government residence at the new location.

Requires an invoice only

  • Utility connection and exit costs charged by third party utility providers.
  • First groceries purchased from a grocer’s shop or supermarket to stock fridge and pantry at the new residence.
  • Associated medical costs, such as gap payments for amounts payable to medical practitioners and allied health. professionals (up to two months).
  • School uniforms.
  • One-off school enrolment fees.
  • Vehicle registration transfer fees (if moving interstate).
  • Licence transfer fees.

Requires an invoice only

  • Temporary accommodation (i.e., staying in a hotel, motel, caravan, or Airbnb).
  • Rent at new location (up to two months).

Tax treatment of Hardship Payments and Relocation Reimbursement Payments

On 6 November 2024, the ATO published a Class Ruling for the Victorian Forestry Worker Support Program

The Class Ruling confirms that a Relocation Reimbursement Payment received by an individual:

  • is not included in an employee’s assessable income for income tax purposes
  • is subject to capital gains tax, but any capital gain is specifically disregarded; and
  • is not a reportable fringe benefit amount for fringe benefit tax purposes.

This means that employees should not be taxed on their relocation payments.

The Class Ruling confirms that, a hardship payment received by an individual:

  • is not included in assessable income for income tax purposes
  • is subject to capital gains tax
  • is not a reportable fringe benefit amount for fringe benefit tax purposes.

The hardship payment must be reported as a capital gain in the employee’s tax return. It forms part of the employee’s assessable income and it will be taxed at the employee’s marginal tax rate.

The ATO Class Ruling can be viewed or downloaded from the ATO website .

A fact sheet explaining the ruling is also available.

How to access the Victorian Forestry Worker Support Program

Native timber industry employees and their family members

Visit ForestWorks or contact 1800 177 001 for more information.

Contractors and businesses

Contact the Forestry Transition Information Line 1800 318 182

Page last updated: 11/11/24