Salary packaging and the tax benefits it brings are based on fringe benefits tax (FBT) exemptions. Exciting news of late is that these tax exemptions have been extended.
Recent changes to the laws mean that from 1 April 2016, small businesses can provide their employees, through salary packaging, with multiple work-related portable devices, even where the devices have substantially the same functionality. Previous laws restricted this to one device per employee per FBT year. Multiple devices were only allowed where the functions of each device was substantially different from each other.
The ‘substantially identical function’ test will still apply for other eligible work related items such as computer software, protective clothing, and other tools of the trade. This law change is particular to portable devices.
What does this mean for you?
There are a few qualifying criteria, like your employer being a “small business” as defined by specific rules and the item still has to be work-related, so if you’re a garbage man or lolly-pop lady maybe you won’t qualify. But, if you’re in a line of work where devices are required or expected, you can now get multiple devices, like an iPad and a laptop. So, who’s up for a laptop, surface, iPad, tablet, smart phone and whatever else you can find?
To discuss further contact the team at JBS Salary Packaging