Finally, we have some clarity regarding the tax treatment of PCR and RAT tests.
If you have purchased a RAT test in order to be able to work you will now be eligible for a tax deduction for that expenditure. The tax deduction will be available from 1 July 2021. Please note however that the normal tax substantiation provisions apply, that is maintaining the appropriate tax receipts and records.
Additionally, for businesses, it is proposed that RAT, PCR and other coronavirus tests will be exempt from Fringe Benefits Tax (FBT) for the 2022 FBT year.
Legislation is currently before Parliament to rectify the above.
The information in this document does not take into account your personal objectives, financial situation or needs and so you should consider its appropriateness having regard to these factors before acting on it. It is important that your personal circumstances are taken into account before making any financial decision and it is recommended that you seek assistance from your financial adviser.