Covid Test Costs To Be Tax Deductible

Covid Test Costs To Be Tax Deductible

The Australian government announced on 7 February 2022 that legislation will be changed to ensure covid test costs will be tax deductible for the 2022 financial year. The deduction will apply both when an individual is required to attend the workplace or has the option to work remotely.

What testing expenses will you be able to claim?

Under the new legislation the Australian Government want to make both polymerase chain reaction (PCR) and rapid antigen self-tests (RAT) eligible. With this being said, at this stage PCR tests are already currently funded by the government.

Who will be able to claim COVID-19 Testing expenses?

If you are required to complete a Covid-19 test for work, then your expense will be tax deductible.

However…. If you purchase the RAT Test’s and use them on your family, such as your children, you will not be able to claim the expense as a deduction. You will also not be able to claim Covid-19 testing expenses if your workplace reimburses you for the expense.

When can I start claiming the COVID-19 testing expenses?

Once implemented, the legislation will be backdated allowing any work related Covid-19 testing expenses to be tax deductible from 1 July 2021.

Please ensure you keep records and receipts so we can enter the expense in your 2022 tax return.

How much will I get back?

The amount you will receive back is calculated based on what tax bracket you fall into.

If you are a small business 100% of the test will be exempt from fringe benefits tax (FBT).

We hope you have found this information helpful. If you have any questions or would like to chat to Taxwise further about Covid-19 testing expenses please call us on 08 9248 8124.

DO YOU HAVE QUESTIONS ABOUT CLAIMING THIS EXPENSE?

CALL (08) 9248 8124 NOW OR SIMPLY FILL IN THE FORM BELOW

Warren Kruger

Specialist Tax Consultant - “Helping YOU Pay The Correct Tax And Not A Penny More”. My story starts on Christmas Eve, back in 1983 in South Africa.

Leave a Comment

Your email address will not be published.

Need Help With

Your Tax Return?

Complete the form below for a fast response

Scroll to Top
Call Now Button