Rapid antigen tests have emerged as a battleground issue heading into the Federal election with the Morrison Government promising to make them tax-deductible.
After coming under pressure from Labor leader Anthony Albanese to make RATs free for all Australians, Treasurer Josh Frydenberg is set to announce that the Coalition Government will make COVID-19 tests tax deductible.
The Treasurer will make the announcement on Monday during a speech to the Australian Industry Group during which he will say that under the Morrison government’s plan, PCR tests and RATS will be tax-deductible.
Under the scheme, the tests will also be exempt from the Fringe Benefit Tax, as long as a business had purchased them for work-related purposes.
“We will bring COVID-19 tests in line with other work-related expenses by making them tax-deductible for individuals and FBT exempt for businesses,” Mr Frydenberg said.
“By making common-sense decisions like this, we are making it easier for households and businesses to get on with their lives.”
The Government said that on average, anyone on an income over $45,000 would receive around $6.50 back in tax for a two-pack of RATs worth around $20.
And a business’ FBT liability would be decreased by $20 for a dual-pack of RATs.
The Government has come under heavy criticism over the availability of RATs during the Omicron wave.
Despite case numbers and hospitalisations falling, RATs remain in short supply and high demand.
The Opposition Leader in January called on the Morrison Government to make RATs free for all Australians.
Earlier in the year, when asked to confirm whether he had completely ruled out making RATs free for Australians – as they are in other countries – Mr Morrison said Australia could not be compared to Singapore, New Zealand and the United Kingdom.
Mr Frydenberg renewed the attack on the opposition, claiming their plan would blow a hole in the budget.
“It is also in stark contrast to Labor that has committed to provide RATs for free on an ongoing basis, with an estimated ongoing cost of up to $13 billion per year that is simply unsustainable,” he said.
“But as all Australians know too well that’s the Labor approach. Spend big and then increase taxes on hard-working Australians to pay for it, leading to a smaller economy, fewer jobs and a weaker budget.”
