Full or Part Time Professional & Academic Staff may salary sacrifice the cost of a laptop/notebook or IPAD device.
Due to ATO restrictions this exemption does not apply to desktop computers.
IMPORTANT NOTE** As from 14th May 2008 Laptop/Notebook/IPAD's can only be salary sacrificed where the laptop is primarily for use in the employee's employment.**
- One laptop/notebook/IPAD device can be packaged per FBT year (1 April to 31 March) and be exempt from FBT.
- The laptop/notebook/IPAD device must be:
i. relatively small in size
ii. easily portable
iii. operated without an external power source.
- Built-in internals (ie. modem and fax cards) and externals necessary for the basic operation of the computer (ie. mouse) can be included.
- Business computer software installed at the date of purchase may also be included as a packaged item.
- Salary Sacrifice applications must be made within 3 months from the date the computer was purchased.
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).
1. the cost of the device deducted from gross salary (less GST);
Tax saving - by reducing taxable gross salary, the staff member pays less income tax.
Payments to the staff member of the cost of the device will be made over one pay period.
In order to salary package a laptop/notebook/IPAD device, the original receipt, which clearly shows that the description, must be submitted together with a HR109 Salary Sacrificing Laptop/Notebook/IPAD Form (RTF)
to Human Resources. Please note that a valid tax invoice is required in order to claim the GST component of the cost of the device.
The FBT year is from 1st April to 31st March each year.
As with other salary package options, you should seek independent financial advice before proceeding with any salary sacrificing arrangements.
Salary Sacrificing Laptops/Notebooks/IPAD's Purchased Overseas
If you wish to salary sacrifice a Laptop/Notebook/IPAD which you are intending to purchase overseas, you need to declare the device to customs on arrival in Australia and obtain the necessary paperwork stating the value of the device in Australian dollars and pay any excise tax or GST due on the item. (The cost of the device 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.
Salary Sacrificing Laptops/Notebooks/IPAD's Purchased Second-Hand
If you wish to salary sacrifice a second-hand laptop/notebook/IPAD 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 the description of the device. A valid tax invoice is required in order to claim the GST.
It is recommended that prior to purchasing your laptop you carefully read the HR109 application form to see if you are eligible to apply to salary sacrifice the device.
Completed forms are to be sent to the Salaries Unit, Human Resources Dept.