Treasury Laws Amendment (Cost of Living Support and Other Measures) Act 2022 (14 of 2022)

Schedule 2   Deductibility of COVID-19 tests

Income Tax Assessment Act 1997

2   At the end of Division 25

Add:

25-125 COVID-19 tests

(1) You can deduct a loss or outgoing to the extent it is incurred in gaining or producing your assessable income if:

(a) you are an individual; and

(b) the loss or outgoing is incurred in respect of testing you for the novel coronavirus SARS-CoV-2 that causes COVID-19 using a test covered by subsection (3); and

(c) the purpose of testing you is to determine whether you may attend or remain at a place where you:

(i) engage in activities to gain or produce your assessable income; or

(ii) engage in activities in the course of carrying on a *business for the purpose of gaining or producing your assessable income.

(2) However, you cannot deduct a loss or outgoing under this section to the extent that it is a loss or outgoing of capital, or of a capital nature.

(3) This subsection covers a test that:

(a) is a polymerase chain reaction test; or

(b) is a therapeutic good (within the meaning of the Therapeutic Goods Act 1989) that:

(i) is included in the Australian Register of Therapeutic Goods maintained under section 9A of that Act; and

(ii) has an intended purpose, accepted in relation to that inclusion, that relates to the detection of the novel coronavirus SARS-CoV-2 that causes COVID-19.