Covid deductions |2023 Gotax

Covid expenses, are they still deductible?

You costs associated with Covid are tax deductible in certain cases. 

The determination is based on your exposure to other persons and an evaluation of risk in those situations.  In order to determine “risk” the following broad outline can be used as a guide:

• you are required to have physical contact or be in close proximity to clients or customers while carrying out your duties.
• you are involved with cleaning premises.

This will usually involve people working in the following industries in which the risk has been determined to be real and not remote or negligible:

• medical industry (such as doctors, nurses, dentists and allied health workers)
• cleaning industry
• airline industry
• hairdressing and beautician industry
• retail, café and restaurant industry.

In such cases tax deductions can be claimed for your out-of-pocket expenses for such items as gloves, sanitiser, anti-bacterial spray and the like.  Generally termed PPE (personal protection equipment), this expenditure is designed to protect you from harm.

These costs must be used within a “work” context (not private) and not be reimbursed by your employer.

Covid tests are also tax deductible and at least diary entries should be recorded to ascertain when and for the purpose of undertaking your job.  Test kits used by family members or friends in a non-work context do not qualify.

Gotax, find out more.

Deduction grabber, record your expenses throught the year.