TAXING TIMES
Mark Chapman, director of tax communications for H&R Block Australia, explains how to claim Covid expenses, such as RATs, as a tax deduction.
C
atching Covid-19 is gruelling
Under the existing general deduction provisions,
and inconvenient and even the
an individual may qualify for a tax deduction for
suspicion that you’ve caught it is
the cost of a Covid-19 test (either PCR or RAT)
stressful. With RAT and PCR tests
where they are taken for work-related purposes,
expensive, it’s a small relief to know that many of
e.g. where there is a mandatory requirement
the most commonly incurred expenses related to
under an employer’s Covid-19 mandate.
Covid-19 can be tax deductible.
A Covid-19 test may also be required by certain countries and states in order for an employee
Rapid Antigen Tests (RATs)
to enter that territory or return to their home
The government announced that it is making
state. This too is tax deductible where the test is
Covid-19 tests tax-deductible for Australian
required for a work-related trip.
individuals when they are purchased for work-
RAT kits purchased by individuals for private
related purposes. This legislation will be
purposes (e.g. personal travel, convenience,
backdated to apply for the 2021-22 income year
no access to PCR testing) will not be tax
(from 1 July 2021).
deductible, either under existing law or under the
But did you know they are probably already deductible? 54
giftguideonline.com.au
government’s proposals. Remember to keep all receipts relating to