Tax Deductible Laptops
Salary Packaging a Laptop
When salary packaging a Laptop or Laptops and other portable electronic devices such as mobile phones, PDAs and electronic diaries, these items are exempt from Fringe Benefits Tax (FBT) if 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
On application, to comply with Australian Taxation Office (ATO) requirements, an employee must:
Obtain a declaration from a work supervisor to validate that the device is primarily used for a work related purpose; and
Maintain a diary of the daily usage of the device for at least one month.
For more information, download the relevant Benefit Fact Form using your employer code through our 'My Employer' section.
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 |
|
|
