The Finance department has announced that Rapid Antigen Test Kits as well as PCR will be tax deductible for individuals and exempt from fringe benefits tax (FBT) for employers if purchased for work purposes. There has been big confusion over the tax treatment of RAT tests with the Prime Minister mentioning that they are tax deductible, but in reality, the tests were only deductible in limited circumstances. If you purchase the RAT tests to be able to work, you will be able to receive a tax deduction for the cost you have incurred from 1July 2021 (of course you need to show the evidence of the expense).
For example, if the RAT test cost $15, someone on a marginal tax rate of 32.5% would receive a tax benefit of $4.88.For businesses, it is expected that RAT and PCR and other tests related to COVID-19 will be exempt from FBT from the 2021-22 FBT year.
Please click here for more info on this topic at ATO website.
