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  • Work-related portable electronic device exemption

    An FBT exemption can apply when providing work related portable electronic devices to your employees.

    From 1 April 2016, an FBT exemption applies to:

    • multiple work-related portable electronic devices you provide to your employees if you are a small business (see note) – even if the devices have substantially identical functions
    • one work-related portable electronic device per FBT year, unless the item is a replacement item, for all other businesses.

    This exemption applies to portable electronic devices:

    • mainly for use in the employee’s employment
    • provided to an employee after 31 March 2016.

    Note: You must be a small business for at least one income year that starts or ends in the relevant FBT year.

    Devices provided before 1 April 2016

    The FBT exemption for all businesses is limited to one item per FBT year for portable electronic devices that:

    • you provide to your employees up to 31 March 2016
    • are basically the same unless the item is a replacement item.

    Portable electronic devices

    A portable electronic device is a device that:

    • is easily portable and designed for use away from an office environment
    • is small and light
    • can operate without an external power supply
    • is designed as a complete unit.

    Portable electronic devices include:

    • mobile phones
    • calculators
    • personal digital assistants (PDAs)
    • laptop computers
    • portable printers
    • portable global positioning system (GPS) navigation receivers

    Example – Portable electronic devices

    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.

    End of example

    See also:

    Other work-related items exemption

    The following work-related items are exempt from FBT although there are some limitations:

    • computer software
    • protective clothing
    • briefcases
    • tools of trade.

    Limitations on this exemption

    This exemption applies to:

    • items mainly for use in the employee’s employment
    • one item per FBT year for items that are basically the same, unless the item is a replacement item.
      Last modified: 22 Jun 2017QC 16948