Salary Sacrifice LaptopTax 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

     

    Show Assumptions

     



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