Tax Deduction for COVID test

From 1 July 2021, if you're an employee, sole-trader or contractor and you pay for a COVID-19 test for a work-related purpose, you can claim a deduction for its cost.

The following must apply to be eligible:

You use the test for a work-related purpose to determine if you can attend or remain at work

• Pay for a qualifying COVID-19 test, being a:

  • polymerase chain reaction (PCR) test through a private clinic, or

  • Test listed in the Australian Register of Therapeutic Goods, including rapid antigen test (RAT) kits

• Pay for the test yourself (that is, your employer doesn't give you a test or reimburse you for the cost)

• Keep a record / receipt to prove that you incurred the cost or further evidence such as:

  • Correspondence from your employer stipulating the requirement to test

  • Your employer's COVID-19 safety plans and policies

  • Relevant state health advice or requirements

  • Diary notes made by you that you used a test to determine whether you could attend or remain at work.