The Fringe Benefit Tax (FBT) system is changing for portable work-related electronic devices

Changes To The Fringe Benefit Tax (fbt) System For Work Related Electronic Devices

FBT Exemption on Devices

It was announced in 2015–2016 Budget that the Government will give a FBT exemption from 1 Apr 2016 for small business with annual aggregated turnover that is less than $2 million which provide staff/employees with over one work-related, qualifying portable electronic device, even if the devices have similar functions.

Currently, FBT exemptions can only apply to multiple work-related portable electronic devices only when the devices perform different functions.

Removing the tax exemption restriction that is provided only for one work-related portable electronic device of each type, will remove any confusion where there functional overlap between products, like a laptop and a tablet.

This measure is now law and applies to all electronic portable devices provided to staff/employees of small business from 1 Apr 2016. If multiple portable electronic devices that are used primarily for work purposes were provided to staff/employees before 1 Apr 2016 and the devices functions are substantially identical then an exemption is available for one device only.

Employers can purchase the portable electronic devices at anytime, but cannot provide them to staff/employees until 1 Apr 2016 or they are liable for the FBT.

Contact Solve Accountants located on the Gold Coast, Qld Australia if you need help with your business tax.

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