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  • COVID-19 tests and fringe benefits tax (FBT)

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

    This means:

    • If you provided (or reimbursed the cost of) COVID-19 tests to your employees for work purposes from this date, you may be able to reduce the taxable value by applying the otherwise deductible rule
    • If COVID-19 tests are the only fringe benefit you provided to your employees, and you have reduced the taxable value to nil, you will not have an FBT liability and will not be required to lodge an FBT return.

    Don’t forget, the existing FBT record keeping requirements apply. You will need to keep all records relating to how you calculated the taxable value of benefits, including the necessary declarations.

    See also

    Last modified: 08 Apr 2022QC 69218