From 1 July 2021, COVID-19 tests purchased by employees for work purposes will be deductible.
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 apply the otherwise deductible rule. This allows you to reduce the taxable value of the benefit by the amount your employees could have claimed if they incurred the cost of the benefit
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 a fringe benefits tax (FBT) liability and will not be required to lodge an FBT return.
Don’t forget: the existing FBT record-keeping requirements apply. You need to keep all records relating to how you calculated the taxable value of benefits, including the necessary declarations.