Bookkeeping Blog
Advice and tips for Australian Businesses
Are COVID-19 Tests Tax Deductible?
The Government announced only on the 7th February 2022, that they will ensure COVID-19 testing expenses will be Tax Deductible.
This will mean FBT will not be incurred by employers to provide the tests to their employees, though this measure IS STILL NOT LAW.
Therefore, in the meantime if you are an employee/worker and have incurred the expenses for COVID-19 tests, you should keep a record of those expenses, especially since many workers have had to have testing done to attend their place of work.
Maree Punzet | Maree’s Mobile Bookkeeping | 0429 363 047
You didn’t go into business to do your Payroll and Bookkeeping, BUT WE DID
The NSW Government has announced the 2022 Small Business Support Program
This Small business support program is helping businesses survive the impacts of the Omicron COVID-19 strain.
If your business falls under these requirements, you may be eligible to apply for a payment under this program.
1. You have a business or not-for-profit organisation with a turnover between $75,000 and $50 million (inclusive) for the year ended 30 June 2021 or the year ended 30 June 2020; and
2. You are experiencing a decline in turnover of 40% or more due to public health orders or the impacts of Omicron during the month of January 2022, compared to January 2021 or January 2020; and
3. You are experiencing a decline in turnover of 40% or more due to the impacts of Omicron from 1 to 14 February 2022, compared to the same fortnight in February in the comparison year used above; and
4. You maintain your employee headcount as of 30 January 2022.
Those eligible businesses and not-for-profit organisations will receive 20% of weekly payroll as a lump sum for the month of February, with a minimum payment of $750 per week up to a maximum payment of $5,000 per week.
Eligible non-employing businesses will receive $500 per week, paid as a lump sum of $2,000.
The 2022 Small Business Support Program is for the month of February only.
Applications are expected to open from mid-February, so be quick to apply so you don’t miss out. If you need assistance in applying, let me know.
For more information and eligibility criteria, see the program guidelines.
Most of this information has been taken from this link https://www.service.nsw.gov.au/transaction/2022-small-business-support-program
Remember applications open Monday 14th February and closes Monday 28th February, so you don’t have much time to apply.
If you need assistance, then give me a call on 0429 363 047, I can take care of this for you and so much more.
Maree Punzet | Maree’s Mobile Bookkeeping | 0429 363 047
You didn’t go into business to do your Payroll and Bookkeeping, BUT WE DID
The RAT tax could attract FBT for business owners
With the current variant of COVID-19, this has caused many businesses to spend the first few weeks of 2022 adjusting to the new norm with masks for all employees and making sure they are safeguarding the employee’s health whilst they transition back into the workplace.
Many business owners are trying to cope with staff off sick and in addition to digital vaccine certificates and high vaccination rates, the access to Rapid Antigen Tests (RATs) has been beneficial to businesses to help monitor and reduce the spread of the virus in their workplaces.
Despite the benefits of the free RATs to employees, employers / business owners need to be aware of the ramifications on their Fringe Benefits Tax obligations.
That’s right…handing out the Rapid Antigen Tests to employees/staff is a great way to keep your workplace safe, but……can also trigger tax ramifications that all employers/business owners need to be aware of.
The ATO’s view on COVID-19 testing and FBT is throughout the pandemic, the ATO realized ongoing guidance about how FBT impacts COVID-19 related expenses.
This information has been extracted from
‘When it comes to offering COVID-19 testing options to employees for free, the ATO allows for an exemption from FBT if the both of the following two conditions are met:
1. The tests are administered by a medical or health care practitioner, and
2. The tests are offered to all employees equally.
The ATO also flags the ‘minor benefits exemption’, which removes any FBT obligations on benefits that are provided irregularly and whose cumulative value over the course of the FBT year is less than $300
RATs are tax deductible for employers and employees alike
While at this stage RATs are non-exempt from FBT, Accountants Daily highlights that, if an employer purchases them for their employees for work related matters, they can be considered business expenses and are therefore tax deductible.
So even if the ultimate position of the ATO is that RATs are to remain non-exempt from FBT, their tax deductibility should certainly be considered when the company prepares its income tax return at the end of its financial year.
Additionally, if an employee purchases as RAT for the purpose of attending the workplace or travelling for work, if the employer does not cover these costs, the testing kit would be a deductable expense for the employee themselves.
FBT and income tax calculations can be very complex, and as seen in the case of RATs, the rules and exemptions can be very nuanced, so always consider consulting a professional before making any tax-related decisions’
If this sounds all too confusing, then give me a call on 0429 363 047, I can take care of this for you and so much more.
Maree Punzet | Maree’s Mobile Bookkeeping | 0429 363 047
You didn’t go into business to do your Payroll and Bookkeeping, BUT WE DID
