The federal government have announced that COVID-19 tests will be exempt from fringe benefits tax (FBT) where they are purchased for work-related purposes.
This new legislation will be in effect from the 2021-22 FBT years, and backdated to July 1, 2021.
What does this mean for me?
Both individuals and businesses benefit from this legislation.
The amount saved on COVID tests is calculated according to their tax-rate.
For a pack of two rapid antigen tests purchased for $20, employees can save on average 40% by claiming it back through their salary packages.
COVID-19 tests are classified under 'other work-related expenses'.
Josh Frydenberg announced the changes stating "COVID-19 tests are an important tool being used by businesses to protect their workforce and to ensure they can keep their doors open and our supply chains running."
For more information on how to save on your COVID-19 test purchases, talk with our salary packaging specialists.