COVID-19 tests and fringe benefits tax

Work Health and Safety

Depending on how employers calculate the value of COVID-19 tests they buy for (or reimburse to) employees, they may be exempt from fringe benefits tax (FBT).

From 1 July 2021, COVID-19 tests purchased by employees for work purposes are deductible.

This means employers who pay for their employees' COVID-19 tests, or reimburse the cost to employees, may be able to apply the otherwise deductible rule. This rule allows employers to reduce the taxable value of the benefit by the amount their employees would have claimed if they had incurred the cost.

If COVID-19 tests are the only fringe benefit provided to employees and the taxable value is nil, the employer does not have a FBT liability and does not have to lodge an FBT return.

For more information

The following are links to information from the Australian Taxation Office.