Portable Electronic Devices
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The Power of Salary Packaging
Salary Packaging a Portable Electronic Device (PED)
When salary packaging a portable electronic device (PED) and accessories, there are specific rules regarding eligibility, FBT exemption, and what can be included:
- Eligibility:
You can salary package one PED per FBT year (1 April–31 March), provided it is primarily for work use and your employer’s policy allows it. Eligible devices include laptops, tablets, smartphones, portable printers, and portable monitors. - Work Use Requirement:
The device must be used mainly for work (generally more than 50%). - Purchase Method:
The device must be purchased outright (not on a plan), and the invoice/receipt should be in your name. - Tax Benefits:
The cost is deducted from your pre-tax salary, reducing your taxable income and saving GST. The device is FBT-exempt if the above conditions are met.
In summary:
You can salary package one work-related PED per FBT year, including certain bundled accessories and software, provided they are included in the purchase price and primarily used for work. Separate accessories and non-essential software are not eligible for salary packaging
Accessories and Inclusions
Mobile Phone
iPad
Laptop/Tablet
Portable Printer
Calculator
Personal Digital Assistant
GPS Unit
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What Can Be Included:
- Built-in internals (e.g. memory upgrades, internal modem) if purchased and invoiced with the PED.
- Necessary externals (e.g. mouse, cabling) if bundled with the PED purchase.
- Bundled items (e.g. carry case, extended warranty) if included in the purchase price.
- Software that is necessary for the device’s basic operation or is 100% business-related, provided it is purchased within one month of the PED and included in the claim.
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What Cannot Be Included:
- Accessories or peripherals not included in the PED’s purchase price (e.g. separate carry bags, external modems, external drives).
- Software that is not necessary for basic operation or is not business-related (e.g. games, entertainment software).
- Devices purchased on a phone plan or similar arrangement.
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Special Notes
- One Device Per FBT Year:
Only one PED with substantially identical function can be salary packaged per FBT year, unless you work for a small business (under $50 million turnover), which may allow more than one. - New Rulings:
Portable display monitors that are designed for work and used with other devices now also qualify for FBT exemption if provided predominantly for work use. - Documentation:
You must provide proof of purchase and may need to complete a declaration confirming work-related use.
Example
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.
FAQ's
Item/Accessory | Included in Salary Packaging? | Conditions |
Laptop, tablet, smartphone (PED) | Yes | One per FBT year, primarily for work, outright |
Internal upgrades (memory, modem) | Yes | On same invoice as PED |
Bundled accessories (mouse, case) | Yes | Included in PED purchase price |
Necessary business software | Yes | If on same invoice or purchased within 1 month |
Separate peripherals (carry bag, modem) | No | Not included if purchased separately |
Non-business/entertainment software | No | Not claimable |
Device on a phone plan | No | Must be purchased outright |
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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.
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.