Portable Electronic Devices (PEDs)
The 6 rules of claiming Portable Electronic Devices (PEDs)
By packaging the cost of your new Portable Electronic Device (PED) you can save on tax and increase your take home pay. A laptop, notebook computer, iPad or similar portable computer is one of the most popular items to package.
The most common items that are eligible are:
Phones - Laptops - Tablets - iPads - Smartphones - GPS units
Rule 1: The item must be a PED
For taxation purposes a PED will need to meet all of the following requirements:
- the device must be easily portable and designed for use away from an office environment
- the device must be small and light
- the device must be able to operate without an external power supply, and
- the device must be designed as a complete unit.
Rule 2: The device must be used primarily for your work
The device must be mostly for work purposes. That is you must use it for work at least 50% of the time.*
Rule 3: The tax invoice or product receipt must be in your name
The PED must be invoiced to you and paid for by you, it cannot be in the name of a family member or associate. This means that your name must be displayed on the invoice.
Rule 4: Generally, you can only package one PED per FBT Year
Renting the device or paying for it on a plan? If you choose to upgrade during the FBT Year, you’ll be able to continue packaging – just provide us with the details of the upgrade
Rule 5: You can’t package external modems or similar computer accessories
Rule 6: You can’t claim depreciation or other income tax deductions.
Like all salary packaged items, you can’t claim depreciation or other income tax deductions.
Which laptop extras can be salary packaged?
- 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 laptop invoice.
- Software that is invoiced or costed separately, but only if it is:
- necessary for the basic operation of the computer, or
- 100% business related software, i.e. software that you purchase solely for your use in income-earning activities (e.g. MS Office). This software must be purchased within one month of the laptop purchase and included in your laptop claim.
- Externals that are necessary for the basic operation of the laptop, 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 laptop and:
- is not necessary for the basic operation of the computer, and
- is not business related, e.g. games, music software etc.
- Peripheral items not included in the purchase price of the laptop, such as cables, external modems, cradles and extended warranties.
- Computer externals that are not necessary for the basic operation of the laptop, such as printers and external modems.
- Carry bags that are not included as part of the cost of the laptop.