PCR tests and RATs will be tax-deductible and backdated to July 1, 2021.
The federal government are set to make all COVID-19 tests tax-deductible for Australian individuals and businesses when they’re purchased for work.
Aussies earning income taxed at 32.5% will revise a tax refund of about $6.50 for every pack of two RATs purchased for $20.
During a speech earlier today, Treasurer Josh Frydenberg announced the government plans to make COVID testing more affordable.
“We will bring COVID-19 tests in line with other work-related expenses by making them tax-deductible for individuals and FBT exempt for businesses,” Frydenberg said.
“By making common-sense decisions like this, we are making it easier for households and businesses to get on with their lives.”
This means if you have to take a COVID test in order to work, you’ll get a little bit of that cost back at tax time.
The new rule covers both Aussie individuals and small businesses.
The amount of money individuals will receive back from the government depends on their tax rate. For small businesses, the total cost is exempt from fringe benefits tax.
While we love to see some kind of assistance, a lot of Aussies are bummed that the tests have never been free.
Frydenberg claimed offering free RATs would blow the budget out.
“It is also in stark contrast to Labor that has committed to provide RATs for free on an ongoing basis, with an estimated ongoing cost of up to $13 billion per year that is simply unsustainable,” he said.
“But as all Australians know too well that’s the Labor approach. Spend big and then increase taxes on hard-working Australians to pay for it, leading to a smaller economy, fewer jobs and a weaker budget.”
https://twitter.com/gobbledeegook/status/1490500206164516866
Maybe it’s just a suitable time to spend a decent amount to keep Australian’s safe.
