Bushfire Assistance and Tax Relief for Victorians

Written By: Chris Mulcahy

Recovery Support and Tax Concessions for Victorian Primary Producers

Bushfires can turn lives, businesses and long-held plans upside down in a matter of hours. For individuals, families, farmers and business owners across Victoria, recovery often involves more than rebuilding property, it also means restoring income, protecting cash flow and making the right financial decisions under pressure.

If you have been impacted, there is bushfire assistance and tax relief for Victorians available to help you recover. Understanding what support exists and how it interacts with insurance, grants and tax rules can make a meaningful difference to your short- and long-term outcomes.

This guide outlines the key forms of assistance available and the important tax considerations to be aware of following a bushfire.

Early recovery efforts on bushfire-impacted farmland as communities begin rebuilding.

Support and assistance available after Victorian bushfires

Victorians affected by bushfires can access a range of government and community support designed to assist with immediate needs and long-term recovery. Assistance may include financial relief, housing support, counselling services and business recovery programs.

Early engagement with support services can help reduce stress and ensure you do not miss out on available assistance.

Emergency recovery services and financial support

Emergency Recovery Victoria (ERV) coordinates recovery support across the state. ERV can help connect individuals and families with:

• Emergency relief and recovery centres

• Housing and temporary accommodation assistance

• Financial, legal and insurance support referrals

• Personal wellbeing and counselling services

  
  

Local councils also play a role in recovery and may provide additional grants, rate relief or community-based support programs.

Government disaster payments and grants

Australian Government assistance

Eligible individuals may be able to access:

• Australian Government Disaster Recovery Payment (AGDRP) — a one-off payment for people who have experienced serious injury, loss of a family member, or significant damage to their home or major assets.

• Disaster Recovery Allowance (DRA) — short-term income support for those who have lost income as a direct result of the bushfires, including employees, sole traders and primary producers.

Victorian Government assistance

The Victorian Government may also provide:

• Hardship and emergency relief payments

• Clean-up and recovery grants

• Emergency accommodation assistance

• Targeted regional and rural support packages

Eligibility and payment types depend on individual circumstances and the nature of the impact.

Support for farmers and primary producers

Primary producers often face unique challenges after bushfires, including stock losses, fencing damage, water shortages and business interruption.

Support may include:

• Clean-up and recovery grants

• Concessional loans

• Mental health and wellbeing services

• Free and confidential support through the Rural Financial Counselling Service

Industry bodies and community organisations may also provide emergency funding, fodder support and practical assistance during recovery.

Insurance claims and rebuilding decisions

Insurance is a critical part of bushfire recovery, but insurance payouts can have different financial and tax outcomes depending on what they relate to and how they are used.

Before finalising major decisions, such as rebuilding, replacing assets or distributing insurance proceeds, it’s important to understand the potential tax implications and available concessions. Getting advice early can help ensure insurance proceeds are used in the most effective way.

Tax relief and concessions after a bushfire

A key part of bushfire assistance and tax relief for Victorians involves understanding how the tax system treats insurance payouts, asset losses and forced sales.

In many cases, special rules and concessions apply that can reduce tax pressure and help preserve cash flow during recovery.

Insurance payouts and tax considerations

The tax treatment of insurance proceeds depends on what the payment relates to:

• Buildings, plant and equipment

Insurance proceeds may trigger capital gains tax (CGT) or depreciation balancing

adjustments. However, in many situations:

• CGT can be deferred if assets are replaced

• Rollover relief may apply

• Tax outcomes can be spread over multiple years

• Trading stock, including livestock or fodder

Insurance relating to trading stock is generally assessable income, but timing

concessions may apply.

Correct structuring and timing can significantly affect the tax outcome.

Forced livestock sales and income deferral

If livestock were sold earlier than planned because of fire damage, loss of feed or water, or safety concerns, special tax concessions may be available to primary producers.

These may allow:

• Income from forced livestock sales to be deferred for up to five years, or

• Proceeds to be offset when livestock are replaced

  
  

These rules can reduce taxable income in the year of sale and support cash flow while the business recovers.

Asset damage, disposals and replacements

Where business or investment assets are destroyed or disposed of due to bushfires:

• CGT rollover relief may apply if replacement assets are acquired

• Depreciation outcomes depend on asset type and insurance treatment

• Replacement decisions can affect future deductions and long-term tax planning

Strategic advice can help align asset replacement with both recovery needs and longer-term financial goals.

Why early advice makes a real difference

After a bushfire, decisions are often made quickly and under emotional and financial pressure. Choices around insurance proceeds, grants, asset replacements and livestock sales can have lasting tax and cash-flow consequences.

Seeking advice early can help you:

• Avoid unexpected tax bills

• Maximise available concessions

• Preserve cash flow during recovery

• Make confident decisions aligned with your long-term plans

How we can support your recovery

At Future Accounting, we support individuals, families and primary producers through recovery using our Preserve – Protect – Prosper approach:

• Preserve your financial position during recovery

• Protect against unintended tax and cash-flow outcomes

• Prosper by rebuilding with clarity and confidence

If you have been impacted by bushfires and would like guidance on bushfire assistance and tax relief for Victorians, we encourage you to make an appointment with our team. A conversation now can help set the foundation for a stronger recovery.

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Disclaimer   

This article does not constitute financial advice and is for general information only. It does not take into account any individual’s personal objectives, situation or needs, and is not intended as professional advice. Any similarity to an individual’s personal circumstances and the examples provided in this article is purely coincidental. Any person acting upon such information without receiving specific advice, does so entirely at their own risk.   

Authorisation under an Australian Financial Services Licence (AFSL) is not required in the provision of this article and the author plus Future Accounting Group Pty Ltd is not acting in its capacity as an Australian Financial Services Licence holder  

Liability limited by a scheme approved under professional standards legislation. 

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