Growing Jobs and Small Business - changes to the fringe benefit tax system for work-related electronic devices
In the 2015–16 Budget, the Government announced that it will allow a fringe benefits tax (FBT) exemption from 1 April 2016 for small businesses with an aggregated annual turnover of less than $2 million that provide employees with more than one qualifying work-related portable electronic device, even where the items have substantially similar functions.
Currently, an FBT exemption can apply to more than one portable electronic device used primarily for work purposes, but only where the devices perform substantially different functions.
Removing the restriction that a tax exemption is only provided for one work-related portable electronic device of each type will remove confusion where there is a function overlap between different products (such as between a tablet and a laptop).
Legislation and supporting material
Find out more
Media release - Introduction of further small business legislationExternal Link issued by the Treasurer on 24 June 2015
Budget 2015 - Growing Jobs and Small BusinessExternal Link
2015-16 Budget Paper No 2 - Revenue Measures page 18External Link
Small business websiteExternal Link
Jobs and Small Business packageExternal Link
Is the measure law yet?
Yes this measure is now law.
The new law will apply to portable electronic devices provided to employees of small businesses from 1 April 2016
Who is eligible?
Any business that meets the definition of a small business entity, that is one with an aggregated turnover less than $2 million, may be eligible.
What has changed?
An FBT exemption will be allowed for small businesses providing their employees with multiple work-related devices from 1 April 2016, even where the items have substantially similar functions.
If multiple portable electronic devices used primarily for work purposes are provided to an employee before 1 April 2016 and the devices have substantially identical functions an exemption is only available for one device.
An employer who provides an employee a laptop on 10 April 2015 and a tablet on 25 February 2016 for work-related use may only be able to claim an FBT exemption for one device because both devices could have substantially identical functions. The employer may have to pay FBT on one of the devices.
A small business employer who provides an employee a laptop and a tablet for work-related use after 31 March 2016 will be able to claim an FBT exemption for both devices even though they may have substantially identical functions. The employer will not have to pay FBT on either of the devices.
The government has announced that it will allow a fringe benefits tax exemption from 1 April 2016 for small businesses with an aggregated annual turnover of less than $2 million that provide employees with more than one qualifying work-related portable electronic device, even where the items have substantially similar functions.