In a recent address to the Australian Industry Group (7th February 2022), Treasurer Josh Frydenberg confirmed the federal government would look to ensure COVID-19 Rapid Antigen Tests (RAT’s) are tax-deductible.
“Today, I’m announcing that we will ensure that COVID19 testing expenses are tax deductible for testing taken to attend a place of work, giving businesses and individuals more clarity and assurance”, the Treasurer said.
Australians will now be able to claim a tax deduction on RAT’s that they buy as part of their work.
“We will also ensure that fringe benefits tax (FBT) will not be incurred by employers where RATs are provided to employees for this purpose.”
This means that Employers will also gain an exemption from fringe benefits tax for the kits as well as other coronavirus tests under draft laws to be put to Parliament within days to cut the cost of checking that workplaces are safe.
Whilst employers have previously assumed that RAT’s have been tax-deductible, the treasurer’s statement has confirmed this as well as the exemption of fringe benefits tax.
These updates will apply to this financial year. A small business would reduce its fringe benefits tax bill by about $20 every time a dual pack of RAT’s are bought for $20 and provided to employees, according to government estimates.
For further detail, read more on the treasurer’s conversation here.
You may also like:
Rewarding Staff for Covid-19 Vaccine