Covid tests to be tax deductible – with a catch
The end of the financial year is just around the corner and the Australian Taxation Office (ATO) has announced something extra we can claim.
Understandably, as Australia tried to get back to normal as possible, some workplaces required their employees to undergo RAT tests - either at their own expense or the company’s.
The ATO’s Assistant Commissioner Tim Loh said people who were required to buy RAT tests to ensure they can go to work can claim it on their tax return from July 1.
"We know that many have faced significant challenges," he said.
A receipt must be provided showing proof of payment for the test, otherwise the ATO will also accept a bank or credit card statement with documentation from employers as evidence.
People who were reimbursed by their employer will not be able to claim their tests on tax.
Mr Loh also said that the tax deduction is only acceptable for work-related purposes.
“If you purchased a COVID-19 test for a trip with your mates, you can’t claim a deduction.”
Other items workers will be able to claim as deductions include protective uniforms.
“If you’re spending your working day in close proximity to customers and at risk of contracting COVID-19, you may be able to claim a deduction for protective items such as gloves, face masks, or sanitiser.”
The federal COVID-19 disaster payment will not be taxed and does not need to be included in returns.
Otherwise, JobSeeker and Pandemic Leave Disaster payments are taxable and do need to be included.
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