Employees, sole traders, and contractors who pay for a COVID-19 test for a work-related purpose can deduct the cost from their taxes from 1 July 2021.
When you can claim COVID-19 testing
To claim a deduction for a COVID-19 test from 1 July 2021, you must:
- - Use the test to determine if you can attend or remain at work
- A qualifying COVID-19 test must be one of the following:
- A polymerase chain reaction (PCR) test at a private clinic, or
- Tests listed in the Australian Register of Therapeutic Goods, including rapid antigen test kits
- You have to pay for the test yourself (your employer does not provide a test or reimburse you for the cost)
- Be sure to keep a record of your expenses (usually a receipt).
Only the COVID-19 tests that you paid for and used to determine your attendance or continuation at work can be deducted.
In the case of a multipack of COVID-19 tests, if some of them were used for private purposes (such as by family members or for leisure activities), you may only deduct the portion of the expense that was used for work.
For any unused tests remaining at the end of an income year, you can claim a deduction for the COVID-19 tests if you purchased them for a work-related purpose and this intention has not changed. You will be able to comply with your tax obligations more easily by doing this.
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Isabella Farmakis Buckovsky
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