Tax deductibility of COVID-19 test expenses
After much speculation, the Government announced that COVID-19 tests, including Polymerase Chain Reaction (‘PCR’) and Rapid Antigen Tests (‘RATs’),
will be both:
- tax-deductible; and
- exempt from FBT
broadly where they are purchased for work-related purposes.
This will require the introduction of new specific legislation (i.e., to clarify that work-related COVID- 19 test expenses incurred by individuals will be tax-deductible or FBT exempt where employers provide the tests to their staff) which will apply both where an individual is required to attend the workplace or has the option to work remotely.
The Government intends that these changes take effect from the beginning of the 2022 income year
and will apply permanently once enacted.
Get expert advice
For more information on how the changes to super affect your retirement savings and what you can do to make the most of them, book an appointment with one of our financial planners. Now is the time to act if you want to have a successful return. Book an appointment with a Modoras professional to know how you can make the most of your tax time this year.
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