Income Tax Assessment Act 1997

CHAPTER 2 - LIABILITY RULES OF GENERAL APPLICATION  

PART 2-5 - RULES ABOUT DEDUCTIBILITY OF PARTICULAR KINDS OF AMOUNTS  

Division 25 - Some amounts you can deduct  

Operative provisions  

SECTION 25-125   COVID-19 tests  

25-125(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.

25-125(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.

25-125(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.