Keep your COVID-19 testing receipts
The Federal Government has announced that work-related COVID-19 test expenses will soon be tax deductibleAustralians who are paying for COVID-19 tests for work-related purposes are being urged to keep proof of their expenses, following a recent announcement by the Federal Government that the cost of such tests will shortly be tax deductible, and exempt from fringe benefits tax for businesses.
“To remove any doubt, the Government will introduce legislation to make clear that work-related COVID-19 test expenses incurred by individuals will be tax deductible,” said the Assistant Treasurer, Michael Sukkar.
“This applies both when an individual is required to attend the workplace or has the option to work remotely.
“By introducing this legislation, the Government will also ensure that fringe benefit tax will not be incurred by employers if they provide COVID-19 testing to their employees for work-related purposes.”
The change will be permanent and will take effect from the start of the 2021-22 tax year.
“This action recognises that COVID-19 tests are an important tool for mitigating transmission risks and absences from the workplace,” said Mr Sukkar.
This measure is not yet law but the ATO will provide further direction once the measure is enacted. In the meantime, workers and businesses are advised to keep their receipts and a record of any expenses incurred for work-related COVID-19 tests.
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