The tax deductibility of Rapid Antigen Testing (RAT) is similar to all other expenses where there must be a connection between the reason of the test and your ongoing employment.
If the test is required by your employer to work on-site (i.e. is mandatory under the employer’s COVID-19 plan), or is required as part of travel interstate for your employment (therefore differs based on states health orders), the cost of these tests are deductible and receipts should be kept.
If an employer is paying for or reimbursing employees for RAT and PCR tests, a recent change in the FBT regulations means these costs are now tax deductible and exempt from FBT. This change will be backdated to the 1st of July. For more advice on this, to discuss your circumstances or if you have any questions then please contact your Cutcher & Neale client advisor.
If you have any questions, please do not hesitate to contact our team.