GIFTGUIDE Winter 2022

Page 54

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


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GIFTGUIDE Winter 2022 by The Intermedia Group - Issuu