Laptop
The benefits of salary packaging a laptop
Laptops and other portable electronic devices such as mobile phones, PDAs and electronic diaries, are exempt from Fringe Benefits Tax (FBT) if they are used primarily for work related purposes.
This means you can salary package one of each of these items per FBT year (1 April - 31 March) and pay for it with your pre-tax salary.
Conditions
In order to package a laptop or portable electronic device as FBT exempt, the item must be used primarily for a work related purpose.
On application, to comply with Australian Taxation Office (ATO) requirements, an employee must:
For more information, download a fact form through the 'My Employer' section of this website.
How does it work?
Toby earns an annual salary of $45,000 per annum (excluding his employer's super contributions) and is considering salary packaging a new laptop worth $3000.
By choosing to salary package the laptop, rather than paying for it from his post-tax salary, Toby could increase his net disposable salary by $945 per annum, or $36 per fortnight.
EXAMPLE ONLY
| Item | Not Packaging | Packaging |
| Toby's Annual Salary |
$45,000 |
$45,000 |
|
Less Pre-Tax Laptop Computer |
$0 |
-$3,000 |
|
Fringe Benefits Tax |
$0 |
$0 |
|
Toby's Taxable Salary |
$45,000 |
$42,000 |
|
Less Tax & Medicare Levy |
-$7,725 |
-$6,780 |
| Toby's Net Cash Salary |
$37,275 |
$35,220 |
| Less Post-Tax Laptop Computer |
-$3,000 |
$0 |
| Toby's Net Disposable Salary |
$34,275 |
$35,220 |
| TOBY'S ESTIMATED ANNUAL BENEFIT |
N/A |
$945 |
| TOBY'S ESTIMATED FORTNIGHTLY BENEFIT |
N/A |
$36 |
|
|
Laptop Selector
You can source your laptop yourself through online and retail suppliers or you can use a laptop selector.
In partnership with Professional Outsource Solutions (POS), RemServ offers a laptop selector service to help you find a laptop that best suits your needs. to access this service select the link below.
Professional Outsource Solutions (POS)
Once you have found a suitable laptop, you can use our online calculator to investigate the possible savings you could achieve by salary packaging the device instead of paying for it with your post-tax salary.
