Laptops and Notebook Accessories Exempt form FBT
The ATO has advised that the FBT exemption on laptops and notebooks provided by employers to employees has been expanded to cover certain accessories.
From April 1, 2006 the following are exempt from FBT:
- Items that are ‘bundled’ by the retailer such as upgraded memory, an extended warranty or a protective carry bag. Please note that they must be presented on a single invoice.
- Internal products, eg modem and fax cards.
- Accessories for use with a laptop or notebook, eg portable printers.
- Pre-loaded software for laptop.
- Software purchased and used by the employee to undertake their duties.
The provision of "exempt" fringe benefits to employees results in a win/win situation for both the business and the employee in that the business obtains an outright deduction for the item with no FBT exposure and the employee is not taxed on the item. The business also benefits in that the exempt benefit is not counted as wages for payroll tax and workers compensation purposes.
- Mobile or car phones used primarily for employment.
- Notebook, laptop or similar portable computers (there is a limit of 1 per employee each FBT year).
- Computer software used in the employee's employment.
- Electronic diaries or similar items.
- Briefcases.
- Calculators.
- Protective clothing required for the job.
- Tools of trade (e.g. a business operating in the building industry provides their employees with loose tools such as hammers, chisels and hand operated power tools
Please contact this office for further information.
