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FBT and Laptop/Portable Computers
Federal Election ? Many Bills Lapse
Fringe Benefits Tax ? Exempt Laptop or Not
FBT and Laptop/Portable Computers
Fringe Benefits Tax ? Exempt Laptop or Not
A recent interpretive decision by the Australia Taxation Office (ATO) highlights the very technical nature of our tax rules.

The interpretation indicates that the repayments by the employer of an employees personal loan, is not an exempt fringe benefit when the employee takes out the loan to buy a laptop computer and enters into a valid salary sacrifice arrangement for the repayments.

The ATO?s opinion is that the employer is not making payments towards the provision of the laptop computer, instead the employer is meeting the employee?s personal loan obligations, which are not considered to be referable to the purchase of the item.

Is this correct?  Maybe, maybe not.  What it does highlight is the need to be very careful when endeavouring to provide fringe benefits or take advantage of tax legislation.  It also emphasises the need to use your advisor at all times.