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How to help clients avoid tax-time trip-wires


In this week’s Accountants Daily podcast, ATO Assistant Commissioner Tim Loh talks tax agents through the fine print on pandemic deductions, work-from-home claims, rentals, crypto and granny flats.

By Philip King2 minute read

When it comes to COVID tests, the rules have changed to make them claimable for the first time.

“Taxpayers who’ve paid for a COVID-19 test for work-related purposes – such as, for example, working out whether you can attend or remain at work – can actually claim a deduction for the COVID-19 test. So that could be a PCR test or RAT (rapid antigen test),” Mr Loh says.

“There are a few conditions that you need to satisfy. You must have spent the money and not be reimbursed by the employer. The client must have used it for work-related purposes, so if the client bought the rapid antigen test to work out if they can go on a holiday to Byron Bay with their mates, that’s not going to be a deductible expense. 

“And finally, you need a record for it. So receipts are best, and also digital invoices would be a really good record to have to support your claim.

“A question that always comes up in relation to your children is when they have to use a test to work out whether they can go [to] childcare or school. That’s not deductible, because it’s not directly related to your income.”



How to help clients avoid tax-time trip-wires
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