Other Developments
FBT: work related items
05.12.2008
Where an employee is reimbursed by their employer for the purchase of a laptop computer with additional memory, the cost of the additional memory forms part of the cost of the portable electronic device for the purposes of sec 58X(2)(a) FBTAA (ID 2008/158).
The exemption under this provision applies to any computer upgrades made at the time of purchase involving built-in internal components, such as additional memory, bigger hard drive, internal modem or wireless LAN module and which are ordered and itemised on the one invoice (even with separate costs). However, where the employee requests peripheral items (such as cables, modems or cradles or an extension to the warranty that is offered) and these come as an additional cost, the exemption will not extend to these items (ID 2008/157).
Where an employer reimburses an employee over a period spanning two FBT years for the cost the employee incurred to purchase the laptop computer, the employer cannot provide another laptop computer to the employee in the second FBT year as an exempt benefit (ID 2008/159).
Where an employer pays an employee’s loan repayments, where the loan was taken out by the employee to purchase an eligible work related item, this will not be an exempt benefit as the repayment is not considered to be referable to the purchaser as an eligible work related item (ID 2008/160).
