From April 2002, staff may salary sacrifice the cost of a laptop or notebook computer. Due to ATO restrictions this exemption does not apply to desktop computers.

 

Note: repairs, maintenance and software expenses may not be included within the salary package.

The cost of the laptop will form part of the staff member's salary package thereby reducing their taxable gross salary. The staff member will be required to purchase the laptop and request reimbursement from their gross salary (the cost of the laptop must be paid in full before seeking reimbursement).

 

Normally when salary sacrificing an item, the cost of the item is deducted from pre-tax salary and paid to the vendor to purchase the product/service. In the case of laptop computers, as the staff member is required to purchase the laptop initially from after-tax salary, the cost of the laptop is deducted from gross salary and passed onto the staff member (in place of the vendor).

 

 

Payments to the staff member of the cost of the laptop will be made in equal instalments each pay over a period of three months, six months, nine months or twelve months. The period over which payments will be made may vary depending on individual circumstances.

 

In order to salary package a laptop computer, the original receipt, which clearly shows that the computer is a laptop or notebook computer, must be submitted together with a HR109 Salary Sacrificing Laptop or Notebook Computers Form (RTF) or (PDF) to Human Resources. Please note that a valid tax invoice is required in order to claim the GST component of the cost of the laptop or notebook computer and this will be reimbursed separately, payable directly into your bank account.

 

 

 

If you wish to salary sacrifice a laptop which you are intending to purchase overseas, you need to declare the laptop to customs on arrival in Australia and obtain the necessary paperwork stating the value of the laptop in Australian dollars and pay any excise tax or GST due on the item. (The cost of the laptop will be calculated at the date of departure from the last overseas port.) This Customs documentation will serve as a fully paid tax invoice and can be attached to the HR109 form and submitted to Human Resources.

 

 

If you wish to salary sacrifice a second-hand laptop it must be purchased from a licensed second-hand dealer. You will need to obtain an original receipt, marked paid in full, which clearly shows that the computer is a laptop or notebook computer. A valid tax invoice is required in order to claim the GST.

How can I obtain more information?

Contact your Faculty HR Consultant.