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The test will have to be taken within 48 hours of the departing flight and the rules will also apply to visitors from Hong Kong and Macau.
Mr Butler said: "I want to stress that the government welcomes the resumption of travel between Australia and China... I also want to stress that this is a temporary measure, reflecting the lack of comprehensive information right now about the situation in China."
Earlier in the day, Canada announced it would bring in a similar rule - all travellers from China, Hong Kong or Macau over the age of two will need to show a negative result from a test taken within two days of departure.
The Canadian government said its measure would be in place for 30 days and would be re-assessed as more data became available.
The two countries join a number of others - including the UK, US, India, Spain, South Korea and France - that have brought in restrictions targeting arrivals from China.
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