PCR and RAT tests to be tax deductible, FBT free
Liz Gibbs • February 7, 2022

The Treasurer has announced that PCR and rapid antigen tests (RAT) will be tax deductible for individuals and exempt from fringe benefits tax (FBT) for employers if purchased for work purposes.


There has been confusion over the tax treatment of RAT tests with the Prime Minister stating for some time that they are tax deductible, but in reality, the tests were probably only deductible in limited circumstances.


If you have had to purchase RAT tests to be able to work, you will be able to receive a tax deduction for the cost you have incurred from 1 July 2021 (you will need evidence of the expense). If the RAT test cost $20, someone on a marginal tax rate of 32.5% would receive a tax benefit of $6.50.


For business, it is expected that RAT, PCR and other coronavirus tests will be exempt from FBT from the 2021-22 FBT year.


Legislation enabling the change is expected before Parliament this week.

Clearance Certificates
By Liz Gibbs May 11, 2025
Just because you have a clearance certificate, it doesn’t mean you’re off the hook for other CGT (Capital Gains Tax) obligations.
minimum pension
By Liz Gibbs May 9, 2025
If you’re receiving an account-based pension from your SMSF, there’s a minimum amount you need to withdraw each year. This amount is worked out using a percentage based on your age and your pension account balance as at 1 July 2024-or on a pro-rata basis if you started your pension partway through the 2025 financial year.
Micro habits big improvements
By Liz Gibbs May 8, 2025
Let’s chat about micro habits—those small, super-manageable actions that can actually lead to some pretty big improvements in how we manage our time and priorities. If you’ve ever left a workshop full of great ideas only to forget them a week later, you’re not alone. That’s where micro habits come in. They’re easy to stick with and surprisingly powerful.
Stay on top of your finances
By Liz Gibbs May 8, 2025
Running a small business can get hectic, but staying on top of your finances doesn’t have to be overwhelming. The ATO has a few helpful tips that can make managing your tax obligations a lot smoother:
CGT small business concessions
By Liz Gibbs May 2, 2025
In a recent decision, the Administrative Review Tribunal ('ART') held that a taxpayer was not entitled to the CGT small business concessions on the disposal of his interests in some farm land.
By Liz Gibbs May 2, 2025
Businesses that pay contractors for 'Taxable payments reporting system services' may need to lodge a 'Taxable payments annual report' ('TPAR') by 28 August each year.
Retirement
By Liz Gibbs May 2, 2025
The amount of money that can be transferred to a tax-free retirement account will increase to $2m on 1 July 2025.
Key tax policies
By Liz Gibbs May 2, 2025
With the 2025 Federal Election approaching, tax policy is a central topic of debate. Here’s a concise comparison of some the major parties’ key tax proposals to help you stay informed when Australia goes to the polls on 3 May 2025:
By Liz Gibbs May 1, 2025
Make Meetings Work for You: 8 Simple Strategies for Better Results
By Liz Gibbs May 1, 2025
The ATO’s updated small business benchmarking tool
More Posts