This means that you will get a portion of the cost of each COVID-19 exam you pay for in order to conduct your work or run your business reimbursed at tax time.
COVID-19 tests will be tax deductible for Australian people and exempt from fringe benefit tax (FBT) for corporations when purchased for work-related purposes, according to the federal government.
It’s not as simple as it seems when it comes to taxes, so here’s all the information you’ll need to have your RATs (rapid antigen tests) in order come tax season.
How much will I be reimbursed?
The announcement applies to both individuals and small enterprises in Australia. The amount a person will receive is determined on their tax rate.
For every pack of two RATs purchased for $20, someone earning a 32.5 percent tax rate will receive a tax refund of around $6.50.
The overall cost of the test is exempt from FBT for small enterprises. For every twin pack of RATs purchased for $20 and distributed to employees, a small business’s FBT liability is reduced by $20.