COVID test tax deductibility
Can you plan RAT tests?
If you purchase Covid tests in order to do your job or run your business, you can now claim a tax deduction. This will apply most often to Rapid Antigen Tests (RATs) as PCR testing is at this stage government funded.
The deduction applies only for work related purposes. That is, the cost of testing other household members, including children, is not eligible.
If you have already purchased and used Covid tests but no longer have the receipts, you will need some alternative record.
This could include bank or credit card statements, or a detailed written diary entry showing what you purchased, where, when, and how much you spent.
If you are running a business, Covid tests will be Fringe Benefits Tax (FBT) exempt. Please also note that GST applies to the purchase and sale of RATs.
As this measure has only just been announced we will update this article as more information becomes available.
Further help:
Feel free to contact Marsh & Partners if we can assist with your taxation compliance. You can reach us on (07) 3023 4800 or at mail@marshpartners.com.au.
