Dental expenses
You can't claim a deduction for dental expenses, including the cost of:
- dentist and specialist appointments for preventative or required dental treatment (for example, your regular dental check-up or fillings)
- cosmetic dental work or treatments (for example, teeth whitening)
- dental products (for example, toothbrush, toothpaste)
- other dental treatments (for example, orthodontist fees for braces to straighten your teeth).
These are private expenses. They are not incurred in the course of earning your employment income.
This is the case even if your employer expects you to maintain a certain appearance or you work in a customer facing role, like a receptionist.
For more information on the limited circumstances when you might be able to claim a deduction for expenses related to your personal appearance, see Personal appearance and grooming.
Example: dental treatment not deductible
Jane works as an executive assistant at a law firm.
Jane chips her tooth and requires dental treatment to have it fixed. She arranges to have her tooth fixed immediately as she is concerned about how it might look to clients of her employer. Jane is out of pocket for the treatment.
Jane can't claim a deduction for the dental treatment. The connection between these costs and her employment activities is insufficient and the expenses are private in nature.
End of exampleIn very limited circumstances, there may be sufficient connection between dental expenses and earning your employment income.
Example: dental costs deductible
Terry is a professional actor. He has an upcoming role that requires him to purchase removable dentures for the appearance of old, oversized teeth. In addition to purchasing the dentures, he will also need to pay to maintain them for the duration of his employment for this role.
As there is a direct connection between these costs and earning his assessable income, Terry can claim a deduction.
End of exampleMedical expenses
You can't claim a deduction for other medical expenses, including:
- the cost of general practitioner (GP) or specialist appointments (for example, physiotherapist fees incurred to treat an injury or ailment)
- hospital admission fees or your private hospital excess
- surgeon fees
- medical aids or appliances (for example, hearing aids)
- other medical treatments or expenses (for example, age reversing or weight management treatments).
Medical expenses aren't incurred in the course of earning your assessable income. The expenses are incurred to put you in the position to earn your income and are also private in nature.
You can claim a deduction for certain compulsory medical assessments and COVID-19 test expenses.
Example: medical expenses not deductible
Pierre is a police officer. As a condition of his employment, he must keep within a specified weight to height ratio (body mass index).
At his annual medical examination, Pierre is found to have a body mass index outside the acceptable range. To pass his medical examination, he is required to undertake a weight management program.
Pierre is not entitled to a deduction for the cost of undertaking the weight management program.
End of example
Example: medical expenses not deductible
Denise is employed as an accountant. Denise develops a bad back which makes it difficult for her to sit at her desk for extended periods of time.
Denise visits her GP who refers her to a physiotherapist. After several visits to the physiotherapist, Denise's back improves.
Denise can't claim a deduction for the cost of visiting her GP or for the fees charged by her physiotherapist. Even though Denise needs to sit at her desk for extended periods of time to work, the expense is not incurred in the course of earning her assessable income as an accountant. These are private expenses.
End of exampleCompulsory medical assessments
You can claim a deduction for compulsory assessments and medical examinations your employer requires you to take in your current employment. For example, if you are employed as a driver, you can claim for a compulsory fitness to drive assessment.
You can’t claim a deduction for compulsory pre-employment assessments and medical examinations you take to obtain employment.
Example: medical examination for licence
Joseph is employed as a commercial airline pilot and must have a current medical certificate to carry out his employment duties. Joseph must have a medical examination each year because his medical certificate is only valid for 12 months.
Joseph can claim a deduction for the cost of his annual medical examination. The expense is incurred in the course of earning his income as a pilot.
If Joseph's employer reimburses him for the cost of his medical examination, Joseph can't claim a deduction for it.
End of example
Example: pre-employment compulsory assessment
Ros is interviewed for a new job as a train driver. She is offered the position, subject to getting a pre-employment medical assessment done and providing the medical report to her employer. The assessment and report costs Ros $125.
Ros can't claim a deduction for this assessment and report, as it's a requirement for her to have this assessment to gain employment as a train driver.
End of exampleFlu and other vaccinations
You can't claim a deduction for the cost of vaccinations, even if your employer requires you to have the vaccination. These are private expenses.
Example: flu vaccination
Penelope is a personal carer and works with clients who are medically compromised. Her employer requires that she obtains the flu vaccination each year.
Penelope can't claim a deduction for the cost of being vaccinated against the flu, even though it is a requirement of her employment. Vaccinations, including the flu shot, are private expenses.
End of exampleCOVID-19 test expenses
From 1 July 2021, you can claim a deduction for the cost of a COVID-19 test if:
- the test is to determine if you can attend or remain at work
- the test is either a
- polymerase chain reaction (PCR) test through a private clinic
- test listed in the Australian Register of Therapeutic Goods, including rapid antigen test (RAT) kits
- you pay for the test yourself (that is, your employer doesn't give you a test or reimburse you for the cost)
- you keep a record to prove that you incurred the cost (usually a receipt).
The deduction is available to employees, sole traders and contractors.
You can only claim a deduction for a COVID-19 test that was used by you to determine whether you may attend or remain at work. For example, if you buy a multipack of COVID-19 tests and some of these tests are used for private purposes (such as by other family or household members or for leisure activities), you must only claim a deduction for the portion of the expense you used for a work-related purpose.
We will accept claims for a deduction for the COVID-19 tests in the income year you paid for the tests if the purpose of buying the tests was solely for a work-related purpose and this intention has not changed for any unused tests remaining at the end of an income year. This is to make it easier for you to comply with your tax obligations.
When you can't claim COVID-19 testing
You can't claim the cost of a COVID-19 test where any of the following apply:
- you use the test for private purposes – for example, to test your children before they attend school or day care
- you are reimbursed for the expense by your employer or another person
- you received a free COVID-19 test
- you work from home and don't attend another place to either gain or produce your assessable income, or to carry on a business for that purpose.
You also can’t claim a deduction for the travel or parking expenses you incur to buy your COVID-19 test. This isn't part of the cost of the test.
Example: COVID-19 tests you can claim
Mary is a nurse at an aged care home. In April 2024 she buys a box of 5 qualifying COVID-19 tests. She only uses these COVID-19 tests before starting a shift if she has any COVID-19 symptoms or has been in contact with a person who has COVID-19. Her employer doesn't reimburse her for the cost of the COVID-19 tests.
As Mary uses all 5 tests to check her COVID-19 status before starting a shift to determine if she can attend work, she can claim a deduction for the total cost of the box of 5 COVID-19 tests.
End of example
Example: personal and work-related use and deductibility
Vinh buys a box of 2 COVID-19 tests at the local pharmacy for $20. He uses one test to confirm he doesn't have COVID-19 before visiting a friend in hospital. A week later he realises that he has been exposed to COVID-19 and uses the other test to check his COVID-19 status before attending his place of work.
As Vinh uses only one of the tests to determine whether he can attend work, he can only claim a deduction of 50% ($10) of the purchase price he paid for the pack of 2 tests.
End of exampleKeeping records for COVID-19 tests
You need to keep records of COVID-19 tests to show that you paid for the test and it was for a work-related purpose. This may include a receipt or invoice, and evidence such as:
- correspondence from your employer stipulating the requirement to test
- your employer's COVID-19 safety plan or policy
- relevant state health advice or requirements
- diary notes made by you that you used a test to determine whether you could attend or remain at work.
If you don't have a record of your expenses before the law changed on 31 March 2022, we will accept reasonable evidence of your expenses. This may include:
- bank and credit card statements
- a diary or other documents, including receipts, that shows a pattern of buying COVID-19 tests after the law change that could reasonably have applied from 1 July 2021.
Completing your tax return
Once you calculate your deduction, if you're an employee enter the amount at Other work-related expenses in your tax return. Include in the description 'COVID-19 tests'.
If you are a sole trader or contractor, enter the amount at All other expenses in your Business and professional items schedule.