The federal government has decided to make COVID-19 tests tax-deductible for Australian residents while businesses will also see these costs exempt from fringe benefit tax (FBT) when tests are purchased for work-related purposes.

For Australians earning an income taxed at 32.5pc there will be a refund of about $6.50 for every $20 pack of two RATs whereas small businesses will reduce their FBT liability by about $20 for every dual pack of RATs purchased for $20

As part of the new legislation announced today by Treasurer Josh Frydenberg in a speech to the Australian Industry Group, the government will include future medically approved tests in the scheme coming into effect from the 2021-22 FBT and income years. The deductibles will be backdated from the 1 July, 2021.

Meanwhile, the Productivity Commission will commence its second five-yearly productivity review to establish a roadmap as the nation rebuilds after the pandemic.

“COVID-19 tests are an important tool being used by businesses to protect their workforce and to ensure they can keep their doors open and our supply chains running,” Frydenberg said.

“As the pandemic has evolved so has our response, and by making common sense decisions like this, we are making it easier for households and businesses to get on with their lives.”

NSW COVID-19 update – Monday 7 February 2022

In the 24-hour reporting period to 4pm yesterday:

– 95.5% of people aged 16+ have had one dose of a COVID-19 vaccine
– 94.1% of people aged 16+ have had two doses of a COVID-19 vaccine pic.twitter.com/NHdGYnwKxT

— NSW Health (@NSWHealth) February 6, 2022

New case numbers:

  • Sadly, 14 people passed away in New South Wales to COVID-19 but hospitalisations continue to fall (at 2099) while the state recorded 7437 new infections over the past 24 hours. Of the patients hospitalised,137 are in ICU.
    Non-urgent elective surgery will resume on Monday, with some public patients being treated in private facilities as well as some regional public hospitals.
  • Victoria recorded 8,275 new infections, a spike of more than a 1,000 reported on Sunday. Seven deaths were reported. Hospitalisations dropped by 14 to 638 while ICU admissions remain steady at 73, one more than reported on Sunday.
    Private hospitals and day centres across Victoria will restart non-urgent surgeries to 50 per cent capacity from Monday.

We thank everyone who got vaccinated and tested yesterday.

Our thoughts are with those in hospital, and the families of people who have lost their lives.

More data soon: https://t.co/OCCFTAtS1P#COVID19Vic #COVID19VicData pic.twitter.com/G4qdk2cB2M

— Victorian Department of Health (@VicGovDH) February 6, 2022