Salary packaging Portable Electronic Devices (PEDs)
Each FBT year, the cost of one Portable Electronic Device can be included in your salary package if it is primarily for use in your employment, AND forms part of your employer’s salary packaging policy.
When paying for an iPad/tablet/laptop computer using pre-tax salary, your taxable income will reduce, thus resulting in you paying less income tax.
What is an eligible Portable Electronic Device?
Portable Electronic Devices are primarily battery-powered portable devices. Eligible PEDs are laptops, tablets and smartphones that you have purchased primarily for work purposes. Desktop computers are not eligible.
Eligible PEDs must be:
- easily portable and designed for use away from an office environment
- small and light
- able to be operated without an external power supply
- designed as a complete unit
Please note: For taxation purposes, only ONE Portable Electronic Device is claimable per FBT year 01/04 to 31/03.
How much can I benefit?
- Wage: $70,000
- Laptop value: $2,000 (including GST)
- Salary sacrifice tax benefit: $800
- Plus GST input credit: $181.82
- Laptop cost: $1,018.18
- SAVING YOU: $981.82
Please note: In the Health and Charities Sector this benefit may be packaged in addition to the threshold (capped) amount for your sector, tax-free.
Things you need to know: The above information is not intended to constitute taxation or financial product advice. Your benefits and savings will vary depending on your personal objectives, financial situation and needs. We recommend you obtain independent financial or taxation advice before making any financial decisions. Eligibility criteria and terms and conditions apply. All salary packaging proposals are subject to the requirements of your employer. Administration fees will apply. The actual administration fee that applies to you may vary depending on your employer. ITC’s (Input Tax Credits or refund on GST) are excluded.
Yes, the device is required to be purchased outright. Smartphones or any other PEDs purchased on a plan are excluded from our salary packaging guidelines.
The device must be mostly for work purposes. That is, you must use it for work at least 50% of the time.*
Yes, to be eligible the PED must be purchased primarily for work purposes and with the invoice/receipt in your name.
No. Only the PED can be claimed.
No. Like all salary packaged items, you can’t claim depreciation or other income tax deductions.
- Built-in internals including modem and fax cards.
- Upgrades to built-in components, including additional memory, bigger hard drive, internal modem and wireless LAN, but only if those upgrades are purchased from the laptop vendor and are invoiced on the same document as the laptop itself.
- Software that is not invoiced or costed separately on the PED invoice.
- Software that is invoiced or costed separately, but only if it is:
- necessary for the basic operation of the device, or
- 100% business related software, i.e. software that you purchase solely for your use in income-earning activities (e.g. Microsoft Office). This software must be purchased within one month of the laptop purchase and included in your PED claim.
- Externals that are necessary for the basic operation of the PED, including mouse and cabling.
- Items bundled into the purchase price by the retailer, including extended warranty or carry case.
- Software that is not included in the purchase price of the PED and:
- is not necessary for the basic operation of the PED, and
- is not business related, e.g. games, music software etc.
- Peripheral items not included in the purchase price of the PED, such as cables, external modems, cradles and extended warranties.
- Computer externals that are not necessary for the basic operation of the PED, i.e. external modems.
- Carry bags that are not included as part of the cost of the PED.