Australian taxpayers will be able to claim millions of dollars worth of COVID-19 related work costs this financial year.
Masks, hand sanitser, personal protective equipment (PPE) and rapid testing kits are among some of the eligible expenses up for grabs.
Businesses small and large say the items have been a necessary, but expensive coat of armour.
“When we annualise it, I think it’s well over $10,000 of personal protective gear,” said Manly Vale pharmacy owner Lachlan Rose.
For Rose, the Australian Tax Office’s announcement is a welcome “boost” to his back pocket during tougher than average times.
All PPE this tax time will be fully refundable and for the very first time, rapid testing kits bought to safeguard workplaces can also be claimed back.
Small-to-medium businesses have been given a haircut on their tax rate this financial year, down one per cent to 26 per cent.
The threshold for depreciating assets claimable in full has gone from $150,000 last year to no cap at all this financial year.
ATO data revealed the average tax refund in 2021 to Australian workers was about $2900.
New research has found 66 per cent of taxpayers who run a small business don’t understand all parts of their tax return.
Expert and director of EDR Accounting Eric Dickler’s advice to all: “Go to see a tax accountant to guide you through the process.”
