FBT Rules for Electronic Devices

Tax Cuts

FBT Rules for Electronic Devices

In the 2015–16 Budget, the Government announced that it will allow a fringe benefits tax (FBT) exemption from 1 April 2016 for small businesses with an aggregated annual turnover of less than $2 million that provide employees with more than one qualifying work-related portable electronic device, even where the items have substantially similar functions.

Currently, an FBT exemption can apply to more than one portable electronic device used primarily for work purposes, but only where the devices perform substantially different functions.

Removing the restriction that a tax exemption is only provided for one work-related portable electronic device of each type will remove confusion where there is a function overlap between different products (such as between a tablet and a laptop).

 

Legislation and supporting material

Legislation is currently being developed for this measure.

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