COVID-19 testing expenses are now tax-deductible


The Treasurer, Josh Frydenburg, announced that the government had secured some 80 million Rapid Antigen Tests (RATs) that will be distributed among high-risk settings in the coming months. He went on to confirm that the government is actively looking into removing the uncertainty around the tax expenses of these.

It has now been confirmed that COVID-19 testing expenses will be tax-deductible, providing a lot of clarity and relief for many businesses who were faced with an additional expense to shoulder, alongside continued strain.

The tax-deductibility was only eligible for tests that need to be taken to attend a place of work.

In addition to this, fringe-benefit tax will not be included for those employers who provide COVID-19 tests for their employees.

We do have a stark warning to issue alongside this however, just to ensure that our clients are not caught out by some assumptions that could be made.

This is by no means an open invitation to horde RAT tests on the government’s dollar. This will be strictly controlled and you will need to jump through a few hoops in order to receive the tax relief. Should you be caught out in any way, do not expect the ATO to look kindly upon your situation.

Business use does not equate to private use and you will need to clearly show that RATs are being used for the purpose of employees returning to work. A disproportionate number of required tests compared to the size and nature of a business will be a red flag that you will not be able to ignore.

If you have any questions regarding these changes we would be more than happy to talk you through the latest updates. Call Glance Consultants on 03 98859793 or email us at

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