How to get $6.50 back on COVID-19 rapid antigen tests
The Treasurer is providing tax breaks for businesses and individuals who use rapid antigen tests (RATs) to be able to attend work.
In a speech today, Josh Frydenberg will tell the Australian Industry Group (AIG) the Government is taking action to remove uncertainty around the tax treatments of these tests.
Also read: Chemist Warehouse flags when rapid test shortage will end
Also read: From $0 to $55: What rapid tests cost around the world
Also read: $112 per person: Govt would SAVE money by providing free RATs
"Today, I'm announcing that we will ensure that COVID-19 testing expenses are tax deductible for testing taken to attend a place of work, giving businesses and individuals more clarity and assurance," Frydenberg is expected to say.
"We will also ensure that fringe benefits tax will not be incurred by employers where COVID-19 tests are provided to employees for this purpose."
So, how can you make sure you get tax back for your tests? Here is the breakdown.
How to claim RATs
The legislation will be backdated to 1 July, 2021 and be valid for the 2021/2022 tax years.
Aussies who earn an income that is taxed at 32.5 per cent will get a refund of around $6.50 for each pack of two RATs for $20.
So, that is anyone earning between $37,001 and $87,000 a year.
Those wanting to claim tax back for their tests will be able to do so in the same way they claim other work-related expenses.
Anyone earning below $37,001 should qualify for free RATs under the Government's concession card program.
Those earning over $87,000 a year will not qualify for the tax break.
Small businesses who provide tests to employees will also be able to claim tax back on those tests.
Small businesses will reduce their fringe benefits tax liability by about $20 for every two-pack of RATs purchased for $20.
Businesses can only claim the tax break for tests given to employees.
Follow Yahoo Finance on Facebook, LinkedIn, Instagram and Twitter, and subscribe to the free Fully Briefed daily newsletter.