COVID-19 RATS Tests Tax Deductibility

Rapid Antigen Tests (RATs) have become a product common in homes and workplaces around the country, employed to limit the potential spread of COVID-19.

The expense of these single-use tests however made their purchase costly to employees and employers who were required to prove that they were fit to work.

However, in February 2022, the Federal Government announced that RATs used for COVID-19 testing will be tax deductible, but only if they were used to test before attending a place of work.

These will also be exempt from fringe benefits tax (FBT) for businesses if they have been purchased for work-related purposes.

There’s a lot of information circulating around about how the tax deduction is set to work. Here’s what has been clarified so far that you can take with you into your 2021/2022 tax returns:

Any test that has been bought in the 2021/2022financial year can be claimed IF there is a record of the purchase.
The FBT liability of a business would be decreased by $20 for a dual-pack of RATs, while a person on more than $45,000 (at a tax rate of 32.5%) would receive around $6.50 back in tax for a two-pack of RATs that’s worth around $20.
This legislation will be in effect from the 2021/2022 FBT and income years and will be backdated to July 1 2021.
This means that any test that was purchased after July 1 will be covered, but not tests that were bought before that day (even if the purchased test was taken in July).

In the interim, if you have incurred expenses for COVID-19 tests, you should keep a record of those expenses. Much like you would for any tax-deductible expense, receipts of any purchase of RATs need to be kept and noted.

It needs to be noted that RAT tests are only able to be claimed presently if they were bought for work-related purposes. If the tests were purchased for personal use, they are not currently able to be claimed on your tax return.

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Farewell Deryn

By Jodie Cunningham • 08 Sep, 2023

Deryn worked for Logan & Hall for over 32 years. She was originally employed in an administration role which she continued to do until she left in 1984 to start her family having children Jane and then David. Deryn returned to Logan & Hall in around 1990 as the Office Manager where she also completed some accounting courses. Deryn eventually went onto managing all the office Self-Managed Super Funds including preparation and lodgement of these returns. During her time at Logan & Hall, Deryn built strong relationships with her clients and will be missed by them we’re sure. Outside of work, Deryn is also well known in the Swan Hill Community with her involvement with the Swan Hill Show and Swan Hill Women in Racing. Deryn could also be found on the golf course. You may have even shared a glass or two of bubbles with Deryn along the way. We treasure the many years we have had with Deryn both at work and personally. She will be missed around the workplace, but we will be keeping in touch. Deep will now be managing the Self-Managed Super Funds and can take care of any queries you may have.

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