This is an exempt benefit, if the expense payments in the FBT year are in relation to the employee's purchase of the one laptop computer.
The other types of exempt benefit that can arise from providing a laptop are as follows.
- Where you own the computer and give it to the employee to keep, this is a property benefit. This exemption is limited to one computer per employee per year.
- Where the computer belongs to you and the employee will have to return it, this is a residual benefit.
If the employee receives a laptop as part of a salary sacrifice arrangement, they are entitled to an income tax deduction for the decline in value of the asset for the 2007-08 and earlier financial years, to the extent they use it for a taxable purpose.
The laptop must be purchased, or the contract for purchase must be entered into, at or before 7.30pm on the 13 May 2008 for the employee to be eligible for the decline in value. If the laptop was purchased, or the contract for purchase was entered into, after 7.30pm on the 13 May 2008, the employee is not entitled to a deduction for the decline in value of the laptop.