The Federal Government has announced that COVID-19 tests will be tax deductible.
The Morrison Government is taking action to ensure that COVID19 tests (including Polymerase Chain Reaction and Rapid Antigen Tests) are tax deductible for hardworking Australians, and exempt from fringe benefit tax for businesses, where they are purchased for workrelated purposes.
To remove any doubt, the Government will introduce legislation to make clear that workrelated COVID19 test expenses incurred by individuals will be tax deductible. 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 COVID19 testing to their employees for workrelated purposes.
This change will take effect from the beginning of the 202122 tax year and will be in place permanently. This action recognises that COVID19 tests are an important tool for mitigating transmission risks and absences from the workplace.
The Government also announced that legislation will be introduced to make it clear that work-related COVID-19 test expenses incurred by individuals will be tax deductible and FBT in the appropriate circumstances.
The Government has acted swiftly throughout the pandemic to provide Australians and small businesses with clarity and certainty and continues to do so as they transition back to their workplaces.
For more information visit ministers.treasury.gov.au